OUTLOOK 2023
Welcome to this year’s Lisney Outlook 2023. This is the 65th year that we have produced an annual report on the Irish commercial and residential property markets.
2022 was another year where extraordinary and unanticipated global events shaped the world in which we live. In 2023, the first half of the year will be slower, but once interest rates and macro-economic factors begin to improve we expect a better second half to the year.
65 YEARS OF INSIGHT AND ANALYSIS
Our research reports are among Ireland’s most comprehensive and respected publications. We have been producing our Annual Reviews since 1958, never missing a year.
SECTOR BREAKDOWN
Discover how we expect each property sector to perform in 2023.
Residential
Market stability will depend on how supply evolves and on the wider political and economic issues. The majority of supply this year will come from those wishing to trade up or down.
development land
The development land market remains challenging. Significant construction cost inflation, along with the higher cost of finance, has impacted the viability of schemes.
New homes
In 2022, nationwide housing completions were at their highest level in 13 years, but this still remains well below what is required. Many schemes that were viable 12 months ago are no longer so due to uncertainty.
Investment
Prime yields have softened by between 35 bps and 75 bps and are likely to drift further in Q1. We are optimistic for a recovery in demand and activity from around September and once this comes we believe it will happen quickly.
Offices
The two main talking points in the Dublin office market last year were the adjustments in the global tech industry and continued remote / hybrid working. Both trends resulted in the rise of grey space, where there is now 180,000 sqm available and more is due in the coming months.
Industrial
The commercial property market dynamics changed as interest rate increases took hold, but the industrial sector remained the star performer.
Retail
There will be a cautious start to 2023, due to challenges including increased cost of goods, fluctuating consumer sentiment, rising energy costs, labour shortages and supply chain issues.
License & Leisure
The outlook for licensed premises property market in Dublin and most other larger regional cities remain positive this year.
Healthcare
The healthcare sector remained difficult in 2022. Severe staff shortages along with rising operational costs are issues across all parts of healthcare.
Student Accommodation
Given the counter-cyclical nature of the student accommodation asset type, investor sentiment remains strong.
Cork
The Cork investment market will remain quiet for at least the first six months of the year, whereas the industrial sector will continue to experience good levels of demand in 2023.
northern ireland
The NI Business Rating Revaluation 2023 will shift the burden of rates liability across the sectors.
LIFE AT LISNEY
2022 brought a greater sense of normality to our lives and Lisney made the most of it.
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Head of Research
Research & Consultancy
Residential Lettings
Residential Sales
Residential Sales
Valuation and Advisory
Industrial, Development Land & New Homes
Offices
Valuation and Advisory
Country Homes & Castles
Residential Sales
Offices
Valuation and Advisory
New Homes
Head of Investments
Industrial
Head of Commercial Agency
Valuation and Advisory
Valuation and Advisory
Head of HR
Residential Sales
Advisory, Valuations
Residential Sales
Valuation and Advisory
Offices
Residential Sales
Residential Sales
Valuation and Advisory
Licensed & Leisure
Residential Sales
Licensed & Leisure
Valuation and Advisory
New Homes
Residential Sales
Investments
Property Management, Health & Safety
Licensed & Leisure
Residential Sales
Residential Sales
OUTLOOK 2023
Every decision we make, and every piece of advice we give is backed up by decades of research into the Irish property market. You can trust our long-term analysis. Discover our Outlook for 2023 below.
