Irish land sales picked-up in the second quarter of the year with 25 assets worth €193m trading, bringing half-year development land volumes to €275m, new data shows.
The figures from property advisor, Savills Ireland reveal that while this is 11% lower than average first half volumes due to the subdued start to the year, the second quarter is 33% above average second-quarter volumes.
Two deals over €50m transacted this quarter, accounting for 58% market turnover.
By way of contrast, the previous quarter's two largest deals were Molyneux House – which sold for €20m – and Beech Hill, Clonskeagh, which sold for a price in excess of its €13.5m guide.
Looking at transactions in terms by potential use, industrial or mixed-use sites made up the largest share of transaction volumes at 28% and 39% respectively.
However, the largest mixed-use deal – and the largest deal of the quarter – was residentially led - Glenveagh’s sale of 5.2 acres at 1-4 East Road to Eagle Street for in excess of €60m.
In the industrial and logistics sector, IPUT continues its expansion with the acquisition of 118 acres of land at Killamonan Business Park for over €50m, making-up the second-largest deal of the quarter.
The remaining three of the five top deals transacted for a combined €26m for over 100 acres.
Two of these comprised residential sites with full planning permission while the third contained permission for a scheme of housing units on part of the lands.
According to Savills Ireland, challenges remain in the market in terms of planning permission uncertainty, with construction cost inflation and rising debt costs now being added to the mix.
However, it said demand remains strong for well-located sites of good quality.
"While the development land market is facing challenges surrounding rising interest rates and viability issues there is some positive sentiment that construction cost inflation will soon ease – however, only time will tell," said John Swarbrigg, Director of Development Land at Savills Ireland.
"A strong pool of buyers are active in the market and demand continues, particularly for good quality, well-located sites.
"The industrial sector, in particular, faces a shortage of sites and as a result, is unlikely to experience any oversaturation in the near future," he added.
