Irish retail property returns grew by 7.2% last year, according to the latest index from estate agent Jones Lang Lasalle (JLL). Overall returns also grew by 13.6%. This compares to a growth of 25.5% in 2015.
JLL reported that the industry sector saw the greatest capital growth at 17.9%, and offices were at 6.5%. Its property portfolio recorded returns of 3.8% in the last three months. Capital values increased by 2.4% in the quarter and by 7.8% over the 12 month period.
Overall, capital values have increased by 78.3% since the market’s nadir, but are still 41.4% lower than the peak, during Q3 of 2007.
JLL also reports that rental values across the entire portfolio increased by 4.1% in the final three quarters of 2016 and by 10.6% for the whole year.
Hannah Dwyer, head of research at JLL, said the overall returns were in line with the long-term annual projections for the JLL Index since 1972 of 13.2%. The main driver was capital growth, with an uplift of 7.8% in the year, and the industrial sector saw the strongest increase of 17.9%.
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