EXPERT'S OPINION

As the COVID-19 situation progresses, central banks and governments across the world are seeking to support their unwell citizens, pressured healthcare systems and challenged economies through expansion and fiscal policies. 

The 2008 financial crisis created a severe impact in all markets, causing many companies to rethink the way in which they worked. A large number of offices closed and there was a clear trend towards optimisation of space as companies sought to reduce fixed costs to improve cash flow.

With the economy severely impacted, but improving, Irish society is learning to live with the restrictions of Covid19, while also progressing, and reclaiming elements of former lives and freedoms.

The evolving COVID-19 pandemic will affect all aspects of the commercial and residential property markets in Ireland both from both a rental and capital value perspective and the depth of its impact will be determined by the length of time it takes to get the crisis under control – an imponderable estimate at this stage.

Irish investment turnover reached just under €700 million during the third quarter of the year, representing an increase of 63% relative to Q2. This brings total investment for the first nine months of the year to just over €1.8 billion, down 40% on the same period in 2019, however it is worth noting that 2019 was an outlier due to the large number of high-value portfolio sales transacted.

The health crisis has raised many question regarding the head office and its role as a central and symbolic entity. It has highlighted ways of working differently, thanks in part to the number of digital tools we now have at our fingertips.

Google’s decision to back out of a 18,600 sq. m letting at The Sorting Office in Dublin’s Silicon Docks recently brought wails of agony; mostly from media though, it has to be said.

The investment market is in for a bumpy ride until year end, with limited transactions expected in the short term. Q1 started robustly, with Irish investment for Q1 2020 up c. 9% YoY, and 2019 being the benchmark year in terms of investment volume records.