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Two retail units in Dundrum and Rathfarnam sold for premium prices

Prices reflect continued appetite for smaller lot sizes

16 Pembroke Cottages in Dundrum in Dublin 14 sold for €505,000, some €65,000 or 13.75 per cent more than its €440,000 asking price set in October 2023

QRE has recently sold two retail units in Dundrum and Rathfarnham in south Dublin for premium prices which reflects the private Irish investor’s current appetite for small lot sizes.

No 16 Pembroke Cottages in Dundrum was sold for €505,000 after quoting €440,000 in October 2023, showing a net initial yield of 6.3 per cent. The 100 square metre property in the heart of Dundrum village was leased in its entire to a high-end salon occupier on a lease expiring in 2044.

No 14 Main Street in Rathfarnham Village was sold for €600,000 after quoting €510,000, also in October 2023, giving it a similar net initial yield of 6.36 per cent. The 137 square metre property was leased to two tenants, a crèche and physiotherapy practice on minimum five-year leases producing a total rent role of €42,000 per annum.

Jonathan Donnelly from QRE Real Estate Advisers said: “Demand for small lot sizes with secure income remains very strong amongst private investors despite the mood music across the market on larger lot sizes.

“The retail sector in particular is proving very resilient, and the returns achieved on these two assets show real confidence coming back to the commercial real estate sector.”

written by Sunday Business Post

March 2024