The total investment spend in 2012 was approx. €500 million. The market has already well surpassed that level in 2013 with €610 million transacted year to date.
We estimate that total investment spend will reach €1.2 billion by year end. The Capital Gains Tax waiver which expires at the end of 2013 will help sustain investor demand.
The foreign banks in particular and NAMA have continued to release more stock and it is expected that another €500m could be brought to market by year end. The majority of buyers are international funds, property companies or family offices. The Dublin office and multi-family markets have witnessed strong international demand and we can see this reflected in the transactions so far this year. Well let, well located stock has been the focal point for most investors but we will start to see a shift towards secondary stock in search of higher yields and higher returns as prime yields continue to contract.
In this new cycle, the first wave of investor demand has been large private investment firms but as with previous cyclical demand, the next wave will see the long-absent, large Irish institutional investors return as they seek to place cash into a recovering market.