The investment market was very strong yet again in Q4 2019, exceeding expectations due to strong investor appetite, with total spend reaching over €2.75bn. This was significantly higher than Q3 and accounted for almost half of the total turnover value for 2019 (€6.03bn). Furthermore, it is the highest quarterly level of turnover on record.
Total office take-up in Q4 reached almost 109,000 sqm. This activity was much stronger than the previous six-month period. In addition, several units are reserved, while overall demand remains strong. Supply levels decreased in the quarter with the Dublin office vacancy rate dropping to 8.0%.
Take-up in the Dublin industrial market totalled a very large 106,850 sqm in the final quarter of the year. This was a significant increase on the Q3 quarterly take-up level of 43,250 sqm. Supply levels remain largest in the southwest region where the stock of industrial buildings is greatest. Positively, almost 28,000 sqm of new industrial stock completed in the three months.
2019 was a busy year and follows on from a sluggish 2018 where there was a stand-off between buyers and sellers in terms of their respective sentiment and view of the market. Affordability had clearly become an issue in 2018. This resulted in a market correction and downward asking price adjustments, much of which occurred in late 2018 and into 2019. As prices became more aligned with affordability, potential purchasers began to engage with the market again and activity levels noticeably improved during the summer months.