Sherry FitzGerald, Ireland’s largest estate agent, reported today (Wednesday 1st May 2024) that the first quarter of the year saw €204 million of development land transacted in the Greater Dublin Area (GDA) and regional centres of Cork, Galway and Limerick. This includes the €152 million sale of the former Jurys Hotel site in Landsdowne Place which closed earlier this year. A total of 20 transactions closed during the three-month period. This is greater than the 16 transactions recorded for the same period in 2022, although it remains well below the long-term quarterly average of 31.
An analysis of transactions by lot size reveals that the majority, 80%, were less than €5 million in value. Notably, 30% were in the €500,000 to €1 million price category, the largest proportion seen in this cohort since the second quarter of 2020. Apart from the former Jurys site, there were no transactions in excess of €15 million in value.
Approximately 80% of sites sold during the quarter were less than 5 acres in size, well above the quarterly average of 58% recorded over the past 10 years. This largely reflects a rise in the proportion of sites less than one acre in size to reach 45%. Only one site in the 10 to 50 acre size bracket was sold during the quarter comprising the off-market sale of an 18.5 acre greenfield site with full planning for 159 residential units in Rush, Co. Dublin to Ballymore for approximately €11.3 million.
According to Jean Behan, Senior Economist, Sherry FitzGerald Research; “Although the first quarter of the year did see an increase in the value of development land transactions, this was the result of a single deal. When this is excluded, the value remains well below the long-term average. That said, the volume of transactions was greater than the same period in 2023, driven largely by smaller lot sizes. This is not surprising considering that we are now approaching a period of decreasing interest rates, which is likely causing developers to hold off on larger-sized transactions until the lending environment becomes more favourable.”
Just over half of all sites that sold during the quarter were located in Dublin. Galway saw an increase in activity during the quarter accounting for 20% of all transactions, while Meath and Cork accounted for the remaining 15% and 10% of transactions respectively.
On a positive note, there are a large number of sites that were sale agreed at the end of the quarter, amounting to close to €350 million, which coupled with the decline in interest rates expected in the second half of the year should see continued improvement in transaction levels as the year progresses.
Commenting on market activity, Brian Carey, Commercial Director, Sherry FitzGerald said “There continues to be strong demand from developers and funders for residential development land that can be activated within reasonable timelines. Stabilized interest rates, the introduction of compact settlement guidelines for local authorities, and the implementation of the large-scale development planning process, are helping to bring greater confidence to development land transactions. However, there continues to be a supply constraint of appropriately residential zoned land to meet our housing needs and this is feeding into the lower volumes of transactions.”
For any further information, please contact:
Jill O’Neill
PR Director
Sherry FitzGerald Group
Ph: 01 2376 500 / 086 252 3277
