Development land sales remained robust in third quarter

CBRE Ireland has revealed that total development land sales reached almost €80 million across 18 transactions in the three months to the end of September.

This was an increase of almost 30% compared to the previous quarter and reflects some positive signs of developers and investors starting to adjust to new pricing levels that have been the result of higher financing costs.

Developers continue to be particularly focused on sites in Dublin and the Greater Dublin Area that have ability to deliver residential housing, where end-user demand remains robust.

While there has been significant demand for sites with the benefit of planning permission in place, there have been some notable transactions for large scale residential sites without planning permission in the last quarter.

This includes the sale of a 62-acre development site at Rathbeale Road in Swords, with the potential to provide for in excess of 700 units, as well as the sale of an 11.5-acre site in Celbridge, Co Kildare, with development potential for in excess of 150 units.

“We have also recently seen more opportunities being brought to the market for repurposing of existing commercial buildings in city centre locations,” said CBRE in a statement.

“This includes the former Ulster Bank building on College Green in Dublin 2 and also an office building at 5-9 South Frederick Street, both of which have the potential for hotel or office redevelopments.”

Outside of the residential sector, a notable hotel development site at Ushers Quay in Dublin 8 was sold in the past three months. The site has planning permission for a 100-bedroom hotel and was acquired by Whitbread plc. to be operated under the well-known Premier Inn brand.