Construction BUSINESS

Planning Regulations and Planning Process Delays Impacting on Irish Commercial Real Estate Sector

 Breaking News
  • €80 Million Port of Cork Container Terminal Development The Port of Cork has marked a major milestone for the company with the launch of the new Cork Container Terminal development in Ringaskiddy. The Cork Container Terminal will initially offer a 360 metre quay with 13 metre depth alongside and will enable larger ships to berth in Ringaskiddy. The development also includes the construction [...]...
  • College Group to Construct New €10 Million Biofuel Facility in County Meath College Group is to invest €10 million in building a new renewable energy facility producing biofuel from used cooking oil and animal fats in north County Meath. The investment is supported by the Irish government through Enterprise Ireland. The new 25 million litre purpose-built plant will be set on a 47.5 acre site and will [...]...
  • McAleer & Rushe Recognised at the Irish Construction Industry Awards Gala Northern Ireland-based developer and contractor McAleer & Rushe has been awarded the prize for ‘International Project of the Year’ at the Irish Construction Industry Awards for Global Student Accommodation’s 1000-bed Catherine House scheme in Portsmouth. The awards, now in their fifth year, recognise companies which demonstrate excellence and innovation in Ireland’s construction industry. McAleer & [...]...
  • Residential Property Prices Rise by 13.0% in Year to April In the year to April, residential property prices at national level increased by 13.0%, according to the latest CSO figures. This compares with an increase of 12.6% in the year to March and an increase of 9.5% in the twelve months to April 2017. In Dublin, residential property prices increased by 12.5% in the year to [...]...
  • Unique Programme to Demonstrate Future Housing Options For the Smart Ageing Population (60+) A unique programme to demonstrate future options for housing the Smart Ageing population (60+) is to start this year. The programme will focus on creating the opportunity to develop six national demonstrator housing developments of 15-40 housing units over the period 2018 to 2022. These demonstrators will be used to showcase a range of different types [...]...

Planning Regulations and Planning Process Delays Impacting on Irish Commercial Real Estate Sector

Planning Regulations and Planning Process Delays Impacting on Irish Commercial Real Estate Sector
January 03
10:23 2018

The latest Commercial Real Estate (CRE) Sentiment Tracker from Origin Capital, completed by 180 industry professionals, identified industry concerns about the current planning regulations and processes in Ireland and the recent increase in commercial property stamp duty as being among the risks faced within the sector.

Findings on CRE in Ireland generally:

  • 84% believed that planning regulations and processes were negatively impacting the sector (14% no impact; 2% positive impact).
  • 80% believed the level of funding being provided by traditional banking institutions in the CRE sector was not sufficient to meet the needs of the market.
  • 67% predicted that it was likely that new funders will enter the market (19% thought it unlikely; 14% unsure).

Findings on Budget 2018 Measures:

  • 57% believed the proposal to refund commercial stamp duty will have a positive market impact (to purchasers of residential sites who commence construction within 30 months).
  • 58% believed that the Government’s creation of the Home Building Finance Ireland (HBFI) under ISIF will lead to a moderate improvement in the availability of debt funding for residential property developers (10% believed a significant improvement).

Findings on the impact of Brexit on CRE in Ireland:

  • 55% of respondents believed that a “Hard Brexit” would be a negative development for CRE in Ireland – 28% of respondents believed the UK would ultimately opt for a “Hard Brexit” (45% thought a “Soft Brexit” the ultimate outcome; 26% unsure of outcome).
  • 53% of respondents believed CRE prices in Ireland were increasing moderately as a result of potential relocation of UK companies to Ireland (7% increasing significantly; 38% no impact)

Ross Metcalfe, CEO of Origin Capital.

Commenting on the findings, Ross Metcalfe, CEO of Origin Capital, stated: “It is interesting to note that the majority of respondents believe that the period of exceptional growth in CRE prices and rents has come to an end, bringing some much-needed stability to the sector. Market stability helps to bring all parties to a transaction, including lenders, who can more accurately determine the repayment capacity of a borrower and gauge the appropriate level of risk involved.”

He added: “Once again, 80% of respondents did not believe that the level of funding provided by traditional banking institutions in the CRE sector was sufficient to meet the needs of the market. This is a similar percentage to our previous CRE Sentiment Tracker. Origin Capital are working with a variety of borrowers to provide financing to meet their lending requirements and we believe this will be important feature in the market in 2018.”

Findings – CRE in Ireland

The findings of the tracker also showed that the majority of the professionals believed that CRE prices and rents (94% and 88% of professionals respectively) will either remain stable or increase slightly in the next three months, following years of substantial growth in the sector.

In addition to the concerns raised around planning and the increase in commercial property stamp duty, other issues raised include:

  1. The current shortage of housing and its consequential negative impact on the CRE market.
  2. Public transport and building height limitations in the Docklands and City Centre affecting future economic/CRE growth.
  3. The continued uncertainty surrounding Brexit.

About Author

admin

admin

Related Articles


Constrcution Summit

PROMO – Construction Summit 2016 – Sustaining the Momentum

Lean Construction Ireland – Enhancing Ireland’s Competitive Advantage

The Magazine – Construction Business

The Magazine – Construction Summit 2016

The Magazine – Construction Summit

Upcoming Events

  • June 26, 2018Hillhead 2018
  • July 15, 2018Franborough International Airshow
  • September 8, 2018Bauen Kaufen Wohnen
  • September 18, 2018For Arch 2018
AEC v1.0.4

New Subscriber





Subscribe Here



Advertisements