Building and borrowing costs squeezing commercial property investment and land sales

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This year set to be 'one of the weakest on record', according to Sherry Fitzgerald

According to Sherry FitzGerald, investment in Irish commercial property totalled €430 million in the third quarter, well below the long-term third-quarter average of €788 million. Photograph: Nick Bradshaw

Rampant inflation in the price of wholesale construction materials, meanwhile, has “compounded” the difficulties, said Jean Behan, senior economist at Sherry Fitzgerald Research, “affecting the feasibility of developments and dampening forward fund and forward commit structured investments”. Overall, commercial investment turnover has reached €1.4 billion so far this year, a 64 per cent decline from the first nine months of last year while the value of land sold has fallen by around half to €226 million.

 

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