| LONDON, July 11
LONDON, July 11 Real estate investors will
triple spending on Irish commercial property this year, in a bet
the country's tentative economic recovery will gather pace,
research showed on Thursday.
Total sales are likely to exceed 1.5 billion euros ($1.9
billion) versus 576 million in 2012, property consultant Savills
It would be the highest amount since 1.8 billion euros in
2007, before the global financial crash sent values plunging by
up to half in a country that, together with Spain, suffered
Europe's worst property crash.
Some investors have said they see value in Irish real
"After steep falls in property values, Ireland is now one of
the highest-yielding markets in the developed world," said David
Skinner, real estate chief investment officer at Aviva Investors
, which owns 28 billion euros of property in Europe.
"Irish real estate looks attractive for long-term investors
with a moderate risk appetite."
Euro zone policymakers have hailed Ireland as a success
story versus other bailed-out countries such as Greece and
Portugal, where political instability and biting austerity
measures are hampering economic growth.
Ireland is due to exit its EU/IMF bailout programme later
this year and is targeting growth of 1.3 percent in 2013, though
the country said last month it had slid back into recession.
Its patchy recovery has not dented overseas interest from
companies like Deutsche Bank's property arm, JPMorgan
and AXA Real Estate, who are chasing a
relatively small number of high-quality properties in the
Under pressure from investors to find high returns, some say
Dublin looks a good bet versus safer but lower-yielding markets
like London, Paris and Frankfurt.
Yields, or the annual rent as a percentage of the property's
value, for the best Dublin offices are about 6.25 percent versus
about 4 percent in London's West End, one of Europe's most
Tenant demand is also on the rise and Dublin office rents
rose in March for the first time since the financial crisis.
Helped by Ireland's low corporation tax rate of 12.5 percent,
companies like Google, Facebook and Ebay
are driving demand.