Dublin’s office market trends differ between indices, but both show rents across all office types continued to rise. Photo: PA
Contrasting views of trends in Dublin’s office market are reflected in two recent indices.
The latest index from MSCI/ SCSI IPD shows that capital values for offices continued to slip in the last quarter of last year, down 0.2pc for the quarter and 1.3pc for the 12 months, bringing their overall decline to 28pc since the spring of 2022.
In contrast, the latest index from estate agents JLL is more upbeat. It shows that capital values for offices rose 0.7pc in the last quarter and 1.2pc over the second half of last year, bringing the 12-month rise to 1pc. The difference is due to the differences between the property portfolios. JLL’s index is based on an office portfolio valued at €316m, MSCI’s portfolio is much larger.
Analysis of MSCI’s overall office figures shows its office capital decline was principally due to older offices, as those built since 2010 saw their values rise 0.8pc for the quarter and 2.1pc for all of last year, mainly because they are built to higher energy standards.
Both indices show that rents across all office types continued to rise with JLL’s index showing healthy growth while MSCI’s indicate that office rents are merely stabilising. MSCI’s shows a 0.1pc rent rise in Q4 leading to a 1.0pc rise over 12 months. JLL’s index shows office rents rose 0.7pc in Q4 and 2.9pc over full year.
Unlike MSCI, JLL monitors trends in residential investments and it shows that PRS rents dipped 0.2pc in Q4 paring back the 12-month rise to 2.1pc.
Nevertheless, residential investors saw the value of their properties grow by 0.8pc in Q4 and 2.6pc over 2025.
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