LISNEY, Ireland’s largest independently-owned property, predicts the demand for investment properties in Cork will continue to grow this year at a fast pace.
In Cork, the estimated market turnover was about €240m in 2019, and this represented about 5% of the Irish market.
This makes it the second busiest location for property investment.
"The demand for investment properties in Cork will continue in 2020 as the yields on offer are more enticing than Dublin returns," Lisney's report states.
"Cork’s top headline office rent, at €345 per square metre, is more than half the top Dublin rate, which will mean that Cork’s office market will remain very competitive in 2020 to attract both Foreign Direct Investment and domestic occupiers.
"Activity levels in 2020 will be assisted by the new high-profile schemes that are under construction and other schemes will commence as the year progresses."
The property advisory company also predict the Private Rented Sector in Cork will be busy.
"Cork’s residential property market remains active with new homes continuing to play an important role in the market. As with the Dublin market, there may be some price growth in selective areas in 2020."
Overall, the uncertainty stemming from global events will be a key aspect of the Irish property investment market this year, according to Lisney.
Despite this, Lisney "expects investment market turnover to be strong in 2020, with several high-profile assets due to be put up for sale that will contribute to overall turnover levels.
"This activity will be mainly driven by the office and Private Rented sectors, which will account for at least 70% of market turnover."
2019 was a strong year for Ireland, and investment turnover is estimated at €4.7 billion. This is the largest amount of investment ever recorded in a year and is 18% higher than in 2018.
Dublin accounted for 82% of investment turnover, followed by Cork at 5%.
In other sectors, Lisney expects residential prices to be relatively steady in 2020, with any growth in selected areas to be no more than 5%.
New Near Zero Energy Buildings (NZEB) regulations will increase construction costs on residential properties by 1% - 4%.
The trend in increased enquiries from UK-based buyers for the upper end of the market is expected to continue into 2020.