The transaction highlighted “the depth of capital and confidence international investors have in the office market” despite pandemic-triggered uncertainty about future working practices, it added.
“The office leasing market can be summarised by a year of two halves. After a largely dormant first six months of 2021, the office market finally burst into life in the final two quarters, with significant leasing activity taking place,” saidThe agency predicted 2022 was likely to see a “buoyant” office market as workers return, while the retail sector will also likely record a “more positive” year.
The final quarter of 2021 saw strong trading in the retail sector as 13 assets exchanged, the largest of which was the Park Collection, a portfolio of prime retail parks sold to Marlet Property Group by Marathon Asset Management for €74 million. Retail parks have performed well during the pandemic, driven by stable demand for electrical goods, furniture, food and household items, Savills noted.
In 2021 the industrial sector’s share of investment volumes continued to grow, it added, accounting for 18 per cent of the market. The sector’s vacancy rate in Dublin remained at a historic low of about 1 per cent throughout 2021.