THE combination of supply shortages and a notable uplift in demand should put further upward pressure on average values of the residential market this year and beyond, a conference in Limerick has heard.
The Sherry FitzGerald Group hosted a breakfast briefing in the Savoy Hotel, entitled: “Outlook 2015: How will Ireland’s residential and commercial property markets perform this year and beyond?”.
The overall theme of the event was a recovering market place and the challenges and opportunities that this represented.
The speakers at the event were Aidan Gavin, managing director of DTZ Sherry FitzGerald, Marian Finnegan, chief economist, Des O’Malley, head of residential in Limerick, and John Buckley, head of DTZ Sherry FitzGerald in Limerick.
Mr O’Malley noted that the average value in the Limerick residential market had grown by over 11% in 2014, and said that the combination of emerging supply shortages and a notable uplift in demand should put further upward pressure on average values in 2015 and beyond.
On the commercial front, Mr Buckley noted that the Limerick market had an inadequate supply of larger grade A office accommodation, notably there is no unit greater than 5,000 square metre of grade A office space left in Limerick.
He suggested that speculative development of such accommodation would be a positive step towards increasing Limerick’s attractiveness for inward investment.
Ms Finnegan outlined a recovery in the Irish housing market with over 40,000 transactions nationwide in 2014.
That said, she noted that supply shortages were now evident in all the regional centres, which was putting upward pressure on prices.
In relation to the commercial market, Ms Finnegan said that over €30 billion was invested in the Irish property market in 2014 including €4.5 billion of commercial property investment, €9 billion of residential property and €17 billion of loan sales.
Mr Gavin said that market confidence is still improving, with increased market activity across all sectors but particularly in terms of loan sales of a myriad of regional property.