Irish Property Values Rise for First Time in Six Years

---

Irish commercial property values grew for the first time in six years, as interest increased in discounted property. 

Capital values for Irish stores, warehouses and offices increased by 0.3 percent during the third quarter, after falling more than 65 percent since the financial crisis, according to Investment Property Databank Ltd. 

After 23 quarters of capital decline, the latest report showed total return -- combining changes in real estate values and rental income -- was 2.6 percent, the highest since September 2007. 

"Growth is creeping back to Ireland's property market after six very difficult years," Phil Tily, executive director & head of UK and Ireland, IPD, said in the report. 

"The rewards of lowering stamp duty, the ridding of rent review legislation, maintaining corporation tax levels, and successfully implementing austerity measures are now starting to pay off, and hopefully what is emerging is a fitter, leaner and more sustainable property sector." 

The Irish commercial property market has shown signs of revival, with demand growing in Dublin. In July, CBRE reported a higher number of Irish commercial property transactions.

The market is even attracting foreign capital. U.S. real estate firm Kennedy Wilson purchased 16 Irish commercial properties for €306 million in the summer.

However, IPD's report says the data masks a "far from standard recovery," as capital values for retail and industrial sectors continue declining, although at a slower pace. Demand for offices in central Dublin from both investors and tenants are driving returns for commercial property, the firm reports.