After a record year in 2019, investment in Irish commercial real estate was still buoyant in early 2020 with total turnover exceeding €674 million during the first three months of the year. Low interest rates and high liquidity in the market led to strong competition, particularly from European investors (excl. UK) who accounted for 40% of Q1 turnover. The impact of the COVID-19 emergency on the investment market gradually became apparent from mid-March onwards.
Measures such as office closures, travel restrictions and the cancellation of large events were taken swiftly by companies, resulting in a dramatic reduction in face-to-face meetings, site visits and other due diligence measures which are vital to progressing investment transactions. Finance is generally on hold, while the halting of development activity has slowed the delivery of new opportunities to the market.