Dublin industrial market enjoys record year

Dublin's industrial market enjoyed a record year in 2015, with take-up reaching a total of just under 475,000 square metres. This is more than three times the take-up in 2011 and up 48 per cent year-on-year.

"Notwithstanding a steady decline in sales relative to lettings through the whole year, sales still accounted for just over two thirds of take-up. This reflects the fact that, despite a strong increase in values, industrial buildings offer exceptional value for money compared with other property sectors and can still be acquired at below replacement cost," says Savills.

Strong demand resulted in a scarcity of modern stock in prime locations for the first time in almost a decade, pushing both prime rents and capital values by over 20 per cent.

The trend is expected to continue in 2016, as the Irish economy continues to advance.

The latest National Accounts show GDP growth of 7 per cent in real terms, while consumer is demand is up, boosted by improving personal finances.

"All of the high frequency data indicate that the strong economic momentum at the tail-end of 2015 has continued... despite some turbulence in the global economy," says Savills' report.

"The resurgence in the consumer economy looks set to persist with solid employment and wage growth along with savings from lower energy prices expected to remain a theme this year. With the ECB engaging in further monetary easing and interest rates in some key trading partners expected to move higher, albeit at a slower rate than previously anticipated, the Euro is likely to remain competitive in the medium term – thus making Irish exports cheaper outside the single currency area. Taken together, these factors should ensure continued demand for goods and therefore sustain the appetite for industrial space."