'Robust' level of development land deals in Q1 - CBRE

Updated / Monday, 12 Apr 2021 11:10

23 land sales were completed in the first quarter of 2021, worth a total of €110m

New figures from property consultants CBRE Ireland show that 23 land sales were completed in the first quarter of 2021, worth a total of €110m.

The average quarterly transaction level in the Irish development land market over the last five years has been about €240m per quarter.

CBRE said this quarter's volume remains significantly behind previous quarters but represents a reasonable outturn given trading conditions and is a positive sign for the market.

Colin Richardson, a senior research analyst at CBRE, said today's figures represented a "highly robust" result for the opening quarter given the challenging trading conditions.

It is only marginally behind the opening quarter of 2020, where €112m of deals were transacted, he added.

Mr Richardson said the impact of the pandemic on land sales has been keenly felt but this quarter shows encouraging signs that the market is returning to more normalised trading despite Covid-10 lockdowns.

He said that while a total of over €500m of sales were completed in 2020, a significant proportion of this was accounted for by the sale of the Irish Glass Bottle Site, so the level of activity witnessed this quarter is encouraging.

"As the economy potentially opens up in the latter half of the year we expect to see more stakeholders pick up their engagement levels around sites and transactional activity is likely to continue to tick up," he added.

Darragh Deasy, Senior Surveyor in the Development Land team at CBRE, said that based on increased activity witnessed towards the end of last year and continued momentum in the opening months of 2021, the company anticipates a "healthier volume" of trading in the sector this year.

A number of sites are being marketed at present, several deals in legals and some housing sites in the Greater Dublin Area currently being prepared for sale, Mr Deasy said.

But he added that the launch dates of some campaigns have had to be pushed out until such time as bidders are in a position to travel to undertake inspections, meaning the second half of 2021 is likely to be considerably busier than the first.



"As the economy potentially opens up in the latter half of the year we expect to see more stakeholders pick up their engagement levels around sites and transactional activity is likely to continue to tick up," he added.

Darragh Deasy, Senior Surveyor in the Development Land team at CBRE, said that based on increased activity witnessed towards the end of last year and continued momentum in the opening months of 2021, the company anticipates a "healthier volume" of trading in the sector this year.

A number of sites are being marketed at present, several deals in legals and some housing sites in the Greater Dublin Area currently being prepared for sale, Mr Deasy said.

But he added that the launch dates of some campaigns have had to be pushed out until such time as bidders are in a position to travel to undertake inspections, meaning the second half of 2021 is likely to be considerably busier than the first.