According to Bloomberg (citing research from JLL), deals for office space in Ireland dropped by 83 percent in Q4-2022, as inflation, higher interest rates and downsizing by IT companies impacted the country’s CRE market. Office deals declined from €756 million in Q4-2021 to €128 million over that same period in 2022, according to the report.

The Irish Times reports that Dublin’s office vacancy rate is 13 percent—up from six percent in 2016. According to another report from The Irish Times which cites research from Savills Ireland, office take-up in Dublin is expected to total 2.25 million square feet for 2022—nearly 50 percent higher than in 2021 but still more than 30 percent lower than 2019, when take-up was more than 3.36 million square feet.

On a separate but related note, Irish banks’ cross-border CRE exposure made up just over half of their total commercial real estate exposure at the start of 2022—the highest share in the EU, according to the Irish Independent (citing a report by the European Systemic Risk Board (ESRB)).

Last Updated on February 1, 2023 by Ramin Seddiq