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The battle for a Green Premium versus a brown discount continues to heat up

Aidan Gavin • 12/10/2021

From a real estate perspective, Budget 2022 was relatively quiet, however a number of measures will have an impact for those in the market.

Firstly, the announcement of a Zoned Land Tax will have caught the attention of many. Although largely rumored, questions have emerged none the less. The zoned land tax will replace the existing vacant site levy which came under heavy criticism for administration difficulties and therefore poor implementation. For example, the period of January to October 2020, only four of the 31 local authorities had successfully implemented the levy. At the outset, this tax is set to apply to owners of zoned residential and mixed use serviced land. The tax is to be based at 3% of the market value and there will be a lead in time of two years for land zoned before January 2022 and three years for land zoned thereafter.

The major change to the previous levy is the focus on zoned land rather than vacant sites and the administration by revenue rather than local authorities. If implemented properly, Cushman & Wakefield expects today’s tax to increase the volume of land brought to the market and subsequently developed on. It may see more zoned land being sold without planning or on a subject to planning basis. However, once again the key to this policy are the details and of course it’s execution. Questions Cushman & Wakefield will be looking for clarity on in the Finance Bill include, what constitutes serviced land? What is meant by lead time? Will the tax include land owned by Government bodies and religious orders? How will it treat sites going through the planning process and what are the exemptions alluded to?

Commenting on the change, Aidan Gavin, Managing Director, Cushman & Wakefield added: “In order for this policy to aid the development of more housing, we reiterate the need for a review and rethink of the planning process. This levy in isolation will not solve the issues relating to the delivery of new housing, with the planning process continuing to be considered a stumbling block.”

Of interest to the hospitality sector, was the announcement of the extension of the commercial rates waiver for quarter four, targeted at the hospitality, arts and certain tourism related sectors. Additionally, the reduced VAT rate of 9% for the hospitality sector will remain in place to the end of August 2022. This is welcomed for an industry which has recorded significant declines over the course of COVID-19. In Dublin, hotel occupancy levels declined to below 30% in March 2020 and have remained at low levels since then, with single digit figures recorded for large periods also. August 2021 marks the first turn in this, with a recovery level of just over 50%, however the sector has some way to go to return to strong trading levels.

Lastly, the increase of the carbon tax by another €7.50 this year to €41 per tonne will be of interest also. Commenting on the change, Aidan Gavin, Managing Director, Cushman & Wakefield noted: “Today’s announcement gives more weight to the case being put forward for a green premium versus the brown discount. Rising carbon taxes further emphasises the differentiation in new and older stock in the market. Construction activity at present is pushing towards high standards with many office blocks seeking LEED accreditation. For older stock, which is not refurbished, the cost of managing this unit will continue to rise into the future and therefore a decision as to how best to manage the asset will need to be made.”


Future of office space (image)
Office Workers Struggle to Stay Connected and Learn

Latest study from Cushman & Wakefield and George Washington University forms part of wider series on the post-pandemic office.

Aidan Gavin • 30/10/2020

coloured light streaking
Vacancy rate hits 20 year low in Dublin logistics market as much needed new stock gets underway

Occupier activity continues to surge in the Dublin industrial and logistics market as Covid-19 and Brexit drives structural demand changes. Latest figures by Cushman & Wakefield reveals a total of 228,200 sq m transacted in the year to date. 

Brendan Smyth • 08/10/2021

Cushman & Wakefield launch €395m Facebook International HQ to the Market

The eagerly anticipated investment sale of a substantial part of Facebook’s International Headquarters, has been formally announced with a guide price in excess of €395m.

Kevin Donohue • 07/09/2021

Office Investment Q1 2020 Report
Surge in reserved space, as office occupier market continues to see improved activity

Latest research from Cushman & Wakefield reveals an interesting quarter for the Dublin office market. Take up in Q2 2021, as expected, continued to struggle with just 19,150 sq m occupied. However, outside of take up, the story of improved demand is best reflected in reserved figures once again, along with a rise in requirements and viewings.

Kate English • 15/07/2021

Industrial Warehouse
Industrial and Logistics sector proves itself as one of the most desirable asset classes

Latest research from Cushman & Wakefield reveals investment activity improves, despite the ongoing pandemic and travel restrictions. Turnover levels reached approximately €641.5m across 37 deals in the second quarter of 2021.


Kate English • 09/07/2021

Glencar House, Ballsbridge
First major office scheme of 2021 goes on site

This week sees the unveiling of the first major office development to go live on-site in 2021.

Aisling Tannam • 24/03/2021

Valuation on the part of Belgian REIT Aedifica

The acquisition augments Aedifica’s market share of the Irish market to 417 beds; and follows in quick succession from the groups February purchase of Brídhaven Nursing Home in Mallow.

Dermot Hughes • 12/03/2021

Samuel Beckett Bridge is a cable-stayed bridge in Dublin
Cushman & Wakefield undertakes valuation on the part of Cofinimmo, in sale and lease back of the Trinity Care Nursing Home Portfolio, in Ireland

The acquisition marks Cofinimmo’s entry to the Irish marketplace, by way of a €93M sale and leaseback, in conjunction with leading European operator and likewise new entrant DomusVi.

Dermot Hughes • 19/01/2021

Irish Investment Market Q1 2020
Investor Interest Remains Strong Despite COVID-19 Challenges

Despite COVID-19 challenges, the final 3 months of the year witnessed a strong close to 2020 for the Irish investment market. According to the latest research by Cushman & Wakefield, a total of €861m transacted in Irish commercial property in the final quarter, bringing the year-end total to just over €2bn.

Kevin Donohue • 15/01/2021


Samuel Beckett Bridge is a cable-stayed bridge in Dublin
Insights • Economy

Ireland Real Estate Market View

A regular update on the latest in commercial real estate in Ireland.
Kate English • 16/11/2021
Insights • Investment

Irish Investment Market

Despite COVID-19 challenges and travel restrictions, total capital inflow reached approximately €1.45bn across 43 deals in the second quarter of 2021, of which €641.5m were income generating at the point of sale and €805m were forward commit style arrangements.

Kevin Donohue • 27/07/2021
Office Investment Q1 2020 Report
Insights • Office

Dublin Office Market

The Dublin office market experienced an interesting second quarter to 2021. On the demand side, take up was, as expected, low with just 19,150 sq m occupied. This brings total take up to 39,885 sq m at the mid-point of the year, compared to the long-run H1 average of 81,880 sq m. 

Ronan Corbett • 27/07/2021


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