Ireland's commercial property market has experienced a 'lost quarter’ as a direct result of Covid-19, according to commercial property specialists CBRE.
Following several months of enforced lockdown the latest CBRE bimonthly report states that a recovery is now in sight for some property sectors, with resumption in activity slowly starting to materialise over recent weeks.
It states that lockdown accelerated structural property trends that were happening anyway.
According to CBRE all sectors of the property market will recover at a different pace.
It says investor appetite for Irish real estate remains strong and considerable fundraising has taken place over recent months.
However, according to CBRE, it will be later in the year before there is a meaningful rebound in demand in the occupier or development sectors of the market.
Meanwhile, it says the retail and hospitality sectors look set to remain in the ‘eye of the storm’ for some time yet.
According to Marie Hunt, Head of Research at CBRE Ireland, the extent to which real estate pricing has been impacted by market uncertainty and rising findings costs remains to be seen.
"The extreme volatility of the last cycle and the extent to which Irish property values declined during the Global Financial Crisis is understandably still fresh in investors’ minds but this downturn is different in many respects. While the pace of descent has been considerably quicker, this downturn is not a liquidity crisis, leverage is considerably lower than it was in 2008/2009 and oversupply is simply not a concern in most sectors of the market," she said.
"The ownership profile of Irish real estate is also utterly transformed. Therefore, any deterioration in value that is experienced as a direct result of Covid-19 is likely to be moderate by comparison to the severe value declines experienced in Ireland during the last property market downturn," she added.
CBRE say the market has reacted positively to Government formation, although it remains to be seen what specific impact the policies of the new administration will have for the property market.