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WHY INVEST IN<br />
IRISH RETAIL?<br />
RETAIL - INDEXED RENTAL GROWTH 1994 - 2016<br />
The outlook for the retail investment market is positive, underpinned<br />
by strong economic conditions and robust market fundamentals.<br />
350<br />
300<br />
GROWING ECONOMY<br />
The Irish economy grew by 7.8% in<br />
2015 making it the fastest growing<br />
economy in the European Union for the<br />
second successive year. The European<br />
Commission is forecasting further<br />
growth of 4.9% this year and 3.7% in<br />
2017, exceeding the 1.6% forecast for<br />
the euro zone as a whole.<br />
<br />
FALLING<br />
UNEMPLOYMENT<br />
A core feature of the economic recovery<br />
lies in the continued improvements in<br />
the Irish labour market. The seasonally<br />
adjusted unemployment rate for May<br />
2016 stood at 7.8%, down from 9.6%<br />
a year earlier and well below the<br />
Eurozone unemployment rate, which<br />
stood at 10.2% as of April 2016.<br />
INCREASING<br />
RETAIL SALES<br />
Figures from the CSO show that the<br />
volume of retail sales increased by 0.8%<br />
in April 2016 compared to the previous<br />
month while there was an increase of<br />
5.1% in the annual figure.<br />
4 MANOR MILLS MAYNOOTH // CO. KILDARE<br />
RISING RENT AND<br />
CAPITAL VALUES<br />
The latest MSCI/ IPD Property Index<br />
showed annualised total returns for<br />
retail of 21.7% in the 12 months to Q1<br />
2016 with income growth of 1.2% and<br />
capital growth of 2.0% over the first<br />
three months of the year. The opening<br />
quarter saw the retail sector overtake<br />
the office sector as the most sought<br />
after asset class. Retail investment<br />
totalled €252 million in quarter one,<br />
accounting for 35% of overall spend.<br />
IMPROVING<br />
OCCUPIER DEMAND<br />
There are a number of active<br />
retailers looking for additional space<br />
including Skechers, Boots, Dealz,<br />
Tiger, Sosterene Grene, Cex, Iceland,<br />
Starbucks, H&M, Bestseller and Quiz.<br />
250<br />
200<br />
150<br />
100<br />
50<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
0<br />
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Dec-94<br />
Sep-95<br />
Dec-94<br />
Sep-95<br />
Jun-96<br />
Mar-97<br />
Dec-97<br />
Sep-98<br />
Jun-99<br />
Mar-00<br />
Dec-00<br />
Sep-01<br />
Jun-02<br />
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Jun-08<br />
Mar-09<br />
Dec-09<br />
Sep-10<br />
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Dec-12<br />
RETAIL - INDEXED CAPITAL RETURNS 1994 - 2016<br />
Jun-96<br />
Mar-97<br />
Dec-97<br />
Sep-98<br />
Jun-99<br />
Mar-00<br />
Dec-00<br />
Sep-01<br />
Jun-02<br />
Mar-03<br />
Dec-03<br />
Sep-04<br />
Jun-05<br />
Mar-06<br />
Dec-06<br />
Sep-07<br />
Jun-08<br />
Mar-09<br />
Dec-09<br />
Sep-10<br />
Jun-11<br />
Mar-12<br />
Dec-12<br />
<br />
<br />
Sep-13<br />
Jun-14<br />
Mar-15<br />
Sep-13<br />
Jun-14<br />
Mar-15<br />
Dec-15<br />
Dec-15
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