While office rents rose by 0.7% across Europe in Q3, the cost of prime space in Dublin’s central business district remained stable at €60/SF.
In a new report, Cushman & Wakefield said Dublin's pricing will remain steady in 2019 on the back of strong appetite for prime space and the anticipated delivery of stock over the next year.
However, rising inflation, continued demand for space and a slowdown in new completion levels are expected to drive prime rents up to €62.50/SF in 2020.
For Dublin, the current levelling off comes after year-on-year rental growth to Q3 of 4.4%, compared with the European average of 2.5%.
Meanwhile, prime rents in the suburbs were also stable in Q3 at €30/SF but are forecast to rise to €32.50/SF next year.
With a Brexit deal looming and the opportunity for potential relocators still up for grabs, Cushman & Wakefield said Dublin and the regional cities appear to remain competitive compared to other European and U.K. centres.
Rents in London’s West End are currently more than double Dublin’s CBD levels at £110/SF. Dublin is also cheaper than Paris' CBD, London’s City, Stockholm, Geneva and Zurich, but more expensive than Milan, La Defense in Paris, Frankfurt, Munich, Amsterdam and Berlin.
Rents in Cork, meanwhile, are €32.50/SF, while space in Limerick costs just €20/SF.
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