Joe Valente at JP Morgan AM sees property implications in Ireland

Changes to the Irish property market portend trends across Europe for this asset class, believes Joe Valente, head of Research and Strategy for the European Real Estate Group at JP Morgan Asset Management.

investors should be watching in the year ahead:Recent data from Capital Economics shows that Ireland is rapidly outstripping the eurozone in terms of all-property yields.

The market has seen a 35% increase in capital values over the past 12 months despite being on the so-called ‘periphery.’

Dublin offices as well as retail have recovered quickly as a result of greater transparency and a more credible economic policy than in the rest of the periphery.

Much of this increase is the result of yield impact but remarkable, nevertheless, given that no other market in Europe experienced an increase in values of more than 10% over the same period.

What does it mean and why should investors care? While Ireland’s rise is not sustainable of course, it highlights the speed with which assets can be repriced even in markets which, not so long ago, where in the midst of severe turmoil.

Polarisation in terms of performance has and will continue to be a major feature of this recovery, whether in the core or the periphery.


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