The JLL Irish Property Index recorded a steady start to the year, with overall returns in the first quarter up by 4.1 per cent.

The 35.2-per cent rise recorded in the 12 months to the end of March was primarily driven by strong results in the two final quarters of last year.

Capital values increased by 2.4 per cent in the most recent quarter and by 25.9 per cent in the full 12 months.

Offices showed the greatest quarterly increase of 4 per cent, followed by industrial (up 2.1 per cent) and retail (up 0.3 per cent).

The index showed that rental values were in positive territory across all sectors for the fourth consecutive quarter.

Overall rental values increased by 7.1 per cent in the last three months.

Offices had the greatest quarterly increase of 11.9 per cent, followed by industrial (+2.8 per cent) and retail (+1.8 per cent).

Hannah Dwyer, head of research at JLL, said that after record returns last year it was no surprise that results for the last three months have not performed as strongly.

That said, overall returns were showing steady growth, driven by modest increases in capital values across all sectors.

“Although initial yields of assets in the portfolio have continued to compress across all three sectors,” Ms Dwyer said, “they are still offering steady returns for investors, with a 6.2 per cent yield across the entire portfolio.”