Despite the fact that the recent problems in European markets may well have impaired the prospects of recovery globally, a recent report from CB Richard Ellis has shown that there has been an improvement in activity in the Dublin property office market during recent months.

Take-up rates in Dublin over the past three months are liable to be higher than in the first quarter of the year, according to the report, with a number of landmark deals set to be signed imminently.

Pretty well all transactions being completed in the Dublin office market currently are lettings deals, although one high-profile office sale has gone through in recent weeks-that of a Georgian office which sold for around two-million Euros.

Added to decent letting activity, there are also several significant necessities for office accommodation in Dublin, which the report claims is very encouraging.

Dublin’s prime rents are currently keeping steady, at around 376 Euros per square metre, or 35 Euros per square foot. However, downward pressures are still affecting secondary accommodation, especially around the M50 where there exists a lot of vacant accommodation.

Although there has been a fall in eth number of new schemes coming on stream of late, the current overhang of space will not erode quickly – and not until more net absorption is achieved, according to the report.

The report states that the rising number of foreign firms – especially IT and pharmaceutical companies – that have chosen to set their European headquarters in Ireland has been particularly encouraging. The report states that many have undoubtedly been attracted by the 12.5% rate of corporation tax, as well as the fact that prime rents have fallen by as much as 44% from peak rates. It says also that the marked decline in wage rates over the last year and a half has also helped, along with the ready labour availability.

The report concludes that, although there is an overall clear improvement in the demand for property investment in Ireland, there is still a lack prime properties coming up for sale. Also, transaction values, despite being up by a significant margin year-on-year, are still weak, the report concludes.