Development land transactions are expected to pick up the pace in the second half of the year, with an estimated €240 million worth of land sale agreed by the end of the first quarter.
Figures released by commercial real estate agent Cushman & Wakefield found the subdued start to 2019 mirrored the performance in the early part of 2018, although the value of land changing hands was 10 per cent higher at €181.3 million across greater Dublin, Cork, Galway and Limerick.
"As expected, quarter one saw a slower volume of development land sales after an exceptionally strong 2018," said Donal Kellegher, Cushman & Wakefield's head of development land.
“We expect this trend to continue into quarter two; however, activity levels and sales volumes have the potential to accelerate in the second half of the year with a number of larger land sales in the pipeline.”
Inflated
In greater Dublin alone, a total of 14 deals closed in the first three months of the year, for a combined value of €160.8 million. However, that overall figure has been inflated by the closing of the Project Arrow sale for €50 million. Located in Leixlip and Newbridge, Co Kildare, this was the largest deal of the quarter, for a site totalling 84.5 acres. Glenveagh Properties was the buyer in that case.
Sandyford Central in Dublin 18 had the second-largest deal, for the sale of a site with full planning permission for 459 apartments to Avestus for €38 million. Another deal of note was the sale of Twilfit House in Dublin 1 to Premier Inn owner Whitbred for €15 million.
Outside of greater Dublin, activity in the regional markets was buoyant, with Cork recording a more than four-fold increase in total capital spend to €11.9 million. The sale of Moore’s Hotel and the adjacent No 11 Morrison’s Quay was a significant sale in the region, for €7 million.
In Galway, sales rose by €1.1 million to €3.3 million. Comprising the vast majority of capital spent were two residential development transactions in Barna for a combined €3 million.
Residential development opportunities were favoured by investors in the quarter, accounting for €150.6 million of total capital spent. Land to be used for commercial purposes made up 12 per cent of total transaction activity.
