The CORFAC meeting discussed at length the evolution of real estate markets internationally, the opportunities in the post-Brexit business world, and the streamlining of collaboration between regional and international markets.
Ireland recorded the highest economic growth in Europe in 2017 (7.3%). 2017 was a record year for the office market, marked by an accelerated trading pace (approx. 350,000 sq m) and a low vacancy rate (7%), which led the level of rents to one close to that before the crisis.
In 2018, the delivery of 240,000 sqm of office space in Dublin is expected, of which 40% are pre-leased. In a context where demand is expected to remain high, incentives for tenants (in the form of free months of rent and contributions to fit-out) may be put under pressure.
The office market is dominated by large players in the Technology, Media, and Telecom industries. Companies such as Google, Facebook, Linkedin, Amazon, Salesforce, etc., appreciate in Ireland the stable legislative framework, low tax rate (12.5%), and level of education of the workforce (who is also a native English speaker).
The economic recovery of recent years and the current period is fueled by investors from major European countries – Germany and the United Kingdom, along with investors from the United States.
Israel continues to attract massive foreign investment primarily due to its top high tech and biotech companies. After Waze, another record transaction ($ 15 billion) was completed last year, the sale of Mobileye to the United States-based Intel.
The market is characterized by few investment products available.
In Italy, there are currently several steps to better regulate real estate, as there is in the field of tourism or agriculture. Transactions are concentrated in Milan, Bologna, and Rome and usually involve new buildings. There is a significant stock of old properties, available for sale at significantly reduced prices, due to the massive investments they require for introduction into the commercial circuit. Many investors come from Asia; local investors are few.
A segment that registers an accelerated growth is the industrial and logistical one, due to the position of a nodal point that Italy has for several transport routes from China and not only.
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