Commercial Property Colm Lauder: Why was the Irish housing minister not at Mipim to drum up investment?
Given the obvious funding requirements, this was a well-attended year for Irish brokers, solicitors, developers, and advisers as the market looks towards a potential turning point. This turning point may optimistically arrive in late 2024, as inflation normalises and support grows for base rates cuts as we enter the second half of the year.
There was a universal acceptance that 2024 will be healthier in terms of investment transaction volumes, but that we are still in for a quieter-than-normal year across European markets. Much of the data emerging from investment agents for Q1 is already hinting to this. For the third year running, the residential investment sector, particularly single and multi-family opportunities across Northern and Western Europe, was the most talked about. But the distinct lack of new deals announced didn’t quite match the broker bluster.
New grade-A office developments requiring funding to advance were seeing surprisingly strong levels of interest, Dublin Dockland opportunities included. There is a view that there is value to be had for equity rich investors, given how expensive debt is to secure. Capital Irish developers were focused on capital raising for new projects, especially residential and office, as many looked to take advantage of the government supports for the rental market, both private and social. Though this story is still little understood by many international investors who could be key to address some of Ireland’s funding shortages, the lack of official representatives from Irish local authorities and government continues to be accepted as a limiting factor.