The Docklands Residential Report shows that 2017 was once again a very strong year for the residential market with capital values up 13.1% and rental values up 10.8%.
The sales market was underpinned by tight supply which produced strong selling prices averaging €622 per sq. ft. Irish investors, attracted by strong rents, were dominant and most are buying with cash. However there was a significant increase in activity from owner occupiers in the second half of the year and we expect this trend to continue in 2018. With the recovery in values, a number of accidental landlords left the market. Yields hardened to 5.76% from 6.2% in 2016.
Strikingly only 8% of our tenants were were Irish which reflects where local companies are recruiting from and the Irish attitude to high-end rents. In 2015 35% of our tenants were Irish. There was a 12% difference between market rents and capped rents so rents caps are certainly working from a tenant’s perspective. This is reflected in a very high renewal rate of 83%.
For further information please download the report here.
View our key findings below: