Ireland’s real estate market saw €1.8 bn in transactions during Q3 2022, representing a 44% growth over the five-year quarterly average, according to JLL.
Office (40% of the total), living (35%) and hotels & healthcare (14%) led investment volumes, with the office and living sectors outperforming their five-year quarterly averages by +70% and +44%, respectively.
The quarter saw the largest single asset office investment in Ireland’s history with Blackstone acquiring Salesforce's new European HQ at Spencer Place in Dublin's North docklands for €500 mln.
Other major investments included the Bartra Carehome Portfolio for €161 mln and a confidential PRS investment in Dublin for 242 apartments at €123.5 mln.
Office investors were mainly attracted by stock that reaches the highest ESG standards
John Moran, CEO and head of Capital Markets at JLL Ireland, said: ‘Third quarter volumes are encouraging with particularly strong activity in the office, residential and alternative sectors. As we enter Q4, there is a high degree of uncertainty as the impact of rising bond yields and interest rates is felt by the market. There is likely to be a bifurcation between prime and secondary assets with the flight to quality ESG proven assets continuing. Further price discovery will happen in the secondary sector but as ever market disruption will provide new opportunities.’
Alternative assets such as healthcare, hotels, and life sciences account for 8% of the market in 2022.
In this segment, one of the highlights was the purchase, by Belgian REIT Aedifica, of four nursing homes from Bartra Healthcare for €161 mln.
Industrial investment is down 19% on the quarterly average due to timing and available stock, but investment in industrial assets during 2022 is the second-highest on record and rents reached a record high of €11.75.