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| Recovery in full-time employment benefitting retail sector in Ireland According to the latest retail report from international real estate advisor Savills, the shift in the structure of employment in the Irish market from part-time to full-time has boosted Ireland's economic recovery and as a result, consumer confidence and disposable incomes are improving. This is having a positive knock-on effect on the retail sector which with retail sales up 8.6% in July, the ninth consecutive month of growth. John McCartney, economist and director of research at Savills Ireland, comments: "Overall, 76,600 new jobs have been added in net terms since the low point in Q1 2012, but the structure of employment growth has also been changing. We are now seeing part-time jobs being converted to full-time employment as the recovery becomes more deeply established. Job growth has driven consumer confidence to its highest level since January 2007 and we see this reflected in increased sales of larger, more expensive items such as cars and furniture. Car sales have risen by a third in the last year, while furniture sales are up 13.3% in the year to July and have risen in each of the last 12 months." Savills reports that the demand for retail space in Q2 focused on prime high streets and shopping centres both in Dublin and in the main regional cities where there was an increase in store openings. Larry Brennan, chairman and head of commercial division at Savills, adds: "Improving sentiment and sales have seen demand for retail space rise significantly, with competitive bidding for prime properties becoming commonplace. This in turn has led to rental increases in prime locations. Currently, zone A rental values are between €4,000 and €5,000 on Grafton Street and €3,500 and €4,000 on Henry Street. "However, despite stronger activity on the ground, relatively few new entrants have come to the Irish market. Moreover, of these new arrivals, the majority are focusing on prime Dublin locations. However, as jobs growth and the housing market recovery diffuse from the main urban centres there will be a gradual improvement in regional markets." Savills predicts prime high street and shopping centre space will remain in demand, resulting in rents increasing and incentive packages tightening in these areas. Additionally, following the recent disposal of the Acorn Portfolio and launch of the Spectrum Portfolio and Capital Collection, the firm expects retail investment sales are likely to continue, with NAMA taking advantage of the shift in investment focus towards retail buoyed by the improving retail economy. write your comments about the article :: © 2014 Construction News :: home page |