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Irish Property Commentary
The summer months are traditionally quiet both in terms of transactions and in terms of sales and lettings but none more so than this year as the market still attempts to come to terms with the much changed circumstances and nervousness still pervades. Finance remains very hard to obtain and there is a general lack of quality product with NAMA still digesting the loans it has taken over, together with the accompanying asset plans. As previously reported, the AIB branch in Grafton Street has been sold at a figure of €28m to show a yield of 6% and the purchaser has now been identified as GLL, the German fund, which has been looking for suitable assets in Ireland for some considerable time. In addition, a further tranche of provincial AIB branches have been sold at yields of around 7% to primarily private buyers. (Monthly - 31/08/2010)
UK Property Commentary
After a significant bounce-back the number of investment transactions completed in London and the South-East, has now eased although there remains a large quantity of money, particularly overseas money, waiting to be placed into good quality assets. In the regions, where activity has been much more subdued, values remain fairly constant and demand has the normal summer "lull" and it may be September before a clear indication in which direction the market is heading. Unlike Ireland, the UK has only just begun corrective budgetary measures, previously postponed due to the election, but now the new Chancellor has unveiled his initial strategy, more testing times lie ahead, certainly for consumers, with a forthcoming increase in VAT. This will also hit retailers but all occupational markets are likely to remain weak for the foreseeable future. (Qtr 2 - 30/06/2010)