According to HWBC, the Dublin office construction market heated up in 2016. 818,000 square feet of space was completed during 2016–a 10-fold increase on levels from 2015. 55% of space has already been pre-committed and completions are set to increase by 184% in 2017.
However, the construction market is being cautious. Space will not be developed without a significant number of pre-lets in place to avoid over saturating the market.
Drastic Drop in Vacancy Rates
At the end of December 2016, the vacancy rate was 7.8% compared to 2010 when the peak rate was 22.8%. The vacancy rate at the end of 2015 was 9%. A clear indication that the vacancy rate continues to drop.
Since 2012, rents in the Dublin area have doubled to €65 per square foot (€700 per square meter). Companies with plans for expansion include Amazon, Grant Thornton, Barclays and Credit Suisse. 818,000 square feet of office space was completed in 2016.
It is expected that many companies in the UK will be looking to relocate their operations in various locations around Dublin. Companies relocating their businesses to Ireland may also be relocating their staff as well adding additional stress to an already tight residential property market. This could be the negative result of Brexit.
Residential Housing Prices
House prices are expected to increase 10-15% in the Dublin area alone. Even ghost estates are expected to be completed to help meet housing demand and ease pressure in the market.