Savills finds that net effective rents in Dublin have increased by nearly 40 percent in the past year, greatly outstripping the 5.1 percent average it records across Europe as a whole. But the Irish Independent quotes its director Roland O’Connell as saying that the city’s rents were recovering from a very low base. “Effective rents fell by more than 50 percent during the downturn and, in that context, it is not surprising that we are seeing something of a bounce-back,” he told the paper.
“While increasing commercial rents are welcome insofar as they reflect the underlying strength of the economy, we would not want to see this rate of growth continue in the long term. Rents can account for a significant part of the occupier cost base and they have knock-on implications for Ireland’s competitiveness and its attractiveness as a business location.”
