According to Savills, Dublin’s office market is on track to show the strongest level of take up since the credit crisis emerged in 2008.  The international real estate advisor has revised its initial 2011 forecast to 150,000 sq m, following total take-up at the end of Q3,of 120,000 sq m and exceeding totals achieved in 2010.

The report states that demand is anticipated to be driven by large ICT and financial services companies and will be focused on Grade A prime locations.  Of the current vacant stock in the market, 18% is defined as Grade A and this is set to diminish in response to current demand levels as the new pipeline for the remainder of the year and beyond will see no new office developments.  Overall vacancy rates have fallen from 23.9% at the end of Q2 to 23%, with the prime city centre locations of Dublin 2 and Dublin 4 at 16.1% and 23.5% respectively.

Joan Henry, Director of Research at Savills Ireland, says: "The Dublin office market is maintaining a strong level of occupier activity.  Take-up for the year to date has been 120,000 sq m, with the prime locations of Dublin 2 and 4 accounting for over 60% of that total.  The ICT sector in particular is very active, as Dublin is increasingly recognised as a hub for international companies."

During Q311, Savills data show that 20% of take up was Grade A quality.  The financial services and ICT sectors were the most active, accounting for 35% and 30% respectively.  Rents have fallen to €300/sqm/year, despite showing signs of stabilising at €350/sqm/year in 2010, reflecting the competitive nature of current market conditions.