INSTA GIRLS

A new report shows that the investment activity on the Irish property market increased between July and September, reaching its highest levels in 18 months, thanks to falling interest rates.

The total investment activity in the past three months was EUR591m, a 26% rise on the same period the previous year. The number of large-scale transactions has also increased. 13% of deals were worth EUR50m and more while 31% were between EUR20m to EUR50m.

The report stated that the increased investment activity was due to "an improved interest rate climate and more favorable asset pricing".

The biggest deal was Eagle Street Partners' EUR130m purchase of The Square Shopping Centre Tallaght from Oaktree Capital Management. Lugus Capital, Patron Capital and Verde Partners acquired the Blackpool Shopping Centre at Cork off-market for approximately EUR49.5m.

Retail dominated the market, with one third of all spending in the last three-month period. Investors have re-invigorated their interest in office and industrial assets, each of which accounted for 23%.

Residential spending, on the other hand, remained modest at only 8%.

The report states that international investors are "discouraged by the current government policy and the uncertainty about future potential interventions".

Investors will likely remain cautious until the next elections when the policy will be more clear. The report stated that this is despite an urgent need for investments in a market which remains severely undersupplied.