ILIM Market Explainer – Market volatility - August 2024
- Article/Press Release
- 07.08.24
- ILIM
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Pension Irish Property Fund - Quarter 2 2024
There has been a notable increase in investment activity in Q2, following a subdued start to the year in Q1. There was €514m invested across 29 deals in the quarter, including 40 Molesworth Street, an office property majority leased to DLA Piper, sold to Deka (a German investment manager), which was the first transaction of a prime office property for some time. The sale price of €37.5m reflects a net income yield of 5.16% and a rate per sq. ft. of €1,120. This was a particularly important piece of evidence for valuers of office stock, the values of which had moved significantly following the rise of interest rates. The uptick in activity is encouraging, and sits well beside an improving macro environment, as inflation continues to abate across Europe, and the European Central Bank (ECB) made its first interest rate cut in June 2024, with further interest rate cuts expected to occur before year end. While transaction activity increased in Q2, it is important to note that the market is still recovering, with initial estimates for Q2 trending 49% below the long-term annual average.
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Market Pulse - July 2024
Each month, Lenny McLoughlin, Chief Investment Strategist sifts through market noise to pinpoint the key themes that have influenced markets – and impacted your investments. Lenny also shares his insights on the forces shaping markets in the short-to-medium term.