Ireland's property market performed better than expected last year, according to a report by commercial property specialists CBRE.
While trading momentum slowed in the second half of the year, it said several high-profile investment transactions were completed over the last 12 months.
These include the Hibernia REIT portfolio, the Salesforce office HQ, and the Valley Healthcare portfolio.
CBRE said the industrial and logistics sector continues to show strong momentum, with take-up remaining elevated and prime rents continuing to grow.
It said office leasing volumes increased year-on-year, but activity still remains below pre-pandemic levels and the long-term market average.
Today's report shows that retail leasing activity turned a corner and the vacancy rate on Grafton Street is now down to just six units, with this expected to fall further in 2023.
Looking ahead, CBRE said it expects the Irish economy and the real estate market to show continued resilience in 2023 with another busy year of transaction and development activity in store, despite macro-economic headwinds.
"While we will likely face some headwinds in 2023, the underlying long-term constructive outlook for the Irish economy continues to attract occupiers and investors from around the globe," said Myles Clarke, Managing Director at CBRE Ireland.
"Our growing population, its youthful profile, and our continued success in attracting overseas foreign direct investment are all factors which reinforce the need for an ever-expanding built environment.
"While the market is now adjusting to higher funding rates, and this transition period can be challenging to navigate, we have continued to see deals transact, which is a healthy sign of the market's resilience," he added.
