Chartered commercial and valuation surveyors are predicting a rise in rents and capital values across prime commercial property asset types over the next 12 months.
A new report from the Society of Chartered Surveyors Ireland shows that both prime and secondary industrial properties continue to be the standout performers, driven by high demand for logistics and distribution spaces.
It predicts that national average capital values and rents for prime industrial will rise by 2.5% over the next 12 months.
Chartered commercial and valuation surveyors expect prime office capital values and rents to increase by 2.1% and 2.6% respectively, while they believe prime retail capital values will increase by 1% and rental values by 1.8% on average.
"We are seeing resilience in key areas particularly in the industrial segment, where demand remains robust, and in prime office and retail assets where quality and location are driving selective growth," said Gerard O'Toole, President of the SCSI.
However, he said challenges remain.
"These include subdued investor activity due to ongoing global uncertainty, changing work patterns and evolving consumer behaviour," he said.
"However, the overall sentiment is one of measured confidence," he added.
Two years ago in the corresponding survey, a majority of respondents, 61%, viewed the market as expensive or very expensive.
In this survey, that figure dropped to 31%, while the proportion viewing valuations as fair value increased to 57%.
Meanwhile, 51% of respondents perceive the market to be in some stage of recovery or upswing, with 33% identifying early recovery and 18% mid-upturn.
