Dublin Saw a Tremendous Increase in Office Construction for 2016

office construction
Image Source: Dan DeLuca, CC BY 2.0

According to the property firm HWBC, Dublin, Ireland saw a huge surge in office construction in 2016. The company reported that the numbers increased tenfold from the completion levels in 2015.

Last year, rents for prime offices have increased by 9%. City space yielded an estimated 4,000 euros per annum, which is up 14% from 2015, while suburban car parking spaces offered an estimated annual rental rate that exceeds 1,500 euros per space.

Due to the feasibility of these spaces, it is expected that office construction this 2017 will continue to rise, with completions expected to increase by 184%. Of all these completions, 55% are already pre-committed.

According to HWBC managing director Tony Waters, up to five million square feet of office space could be created in the city in the coming years. He said:

“However, much of this space will not be delivered without significant pre-lets in place, so at current levels of construction we see no risk of over supply as happened in previous cycles.

“Whilst rental growth in the office market in Dublin has eased from the double digit levels of 2012 to 2015, prime office rents rose a very respectable 9pc and will grow by a similar level in 2017.”