Deal flow drops below levels seen during COVID pandemic. Activity in the development land segment was subdued in the first half of the year with approximately €130 million worth of transactions across 45 deals, down 67% from €390 million in the first half of 2022 and below levels seen during the height of the COVID pandemic in 2020.
- Finance and construction costs remain key short-term constraints to development activity
- Housing fundamentals remain solid even as inflation rates ease
- The Greater Dublin Area remains popular
- Commercial development site deal activity was weak in the first half of 2023 with just under €24 million in deals taking place
“The first half of 2023 was a sluggish period for development land sales, hindered by continued increases in Euro area interest rates and still elevated construction costs. However, the longer-term picture for well-located residential and commercial developments still appears robust.” Paul Nalty, Associate Director, Development Land at Cushman and Wakefield