Dublin’s licensed property market resilient amid cost challenges in 2024

Demand remains strong for large premises in affluent suburbs and city centre properties with premium pricing potential

The licensed premises property market in Dublin and larger regional cities are set to thrive this year (Photo by Anna Nekrashevich via Pexels)

According to a report from Lisney, high interest rates along with changing occupier trends and the costs associated with implementing sustainability measures will mean a subdued investment sector for much of 2024.

Activity in the licensed premises property market will remain good in Dublin and in most of the larger regional cities this year; particularly in the €1 million to €3 million price range.

Demand will continue to be focused on large premises in affluent suburbs as well as properties in the city centre with scope for premium pricing and at least four days of high-volume trade. However, the trading environment will see further headwinds in terms of increased costs and some in the sector will be impacted by warehoused Revenue debt from the pandemic.

The industrial sector was the busiest part of the investment market last year with several large portfolios sold.

EU directives will continue to tighten to achieve a climate-neutral building stock by 2050. Failure to meet sustainability criteria will result in a devaluation of assets.

Dublin’s office vacancy rate hit nearly 16% in late 2023, the highest since 2013. While the return of staff to the office is increasing, providing businesses with space certainty, challenges persist. Hybrid working and adjustments in the tech sector impact demand, making the office sector the least active among the key markets. With no new office buildings expected beyond 2026, the supply gap for A-rated/zero-emission structures meeting 2030 ESG commitments remains a concern.

Aoife Brennan, Lisney research director, says: “In both the commercial and residential property markets, many of the dominant trends from the latter half of 2022 continued throughout 2023 and will continue for much of 2024. Global interest rates are having the widest impact on the world of property, but so too are elevated construction costs, delays in the planning system, the evolution in building occupancy and greater moves towards sustainability.

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