Planning & Development Outlook Q2 2020 has been saved
Planning & Development Outlook Q2 2020
The effects of the Covid-19 public health restrictions on the real estate sector are becoming more evident and the tangible impacts are being realised. Deloitte Real Estate Advisory examine the effects on the Irish planning system, the impact on the residential and commercial real estate markets in Ireland along with some key market statistics from Quarter 2, 2020.
Deloitte Real Estate Advisory have published their Planning and Development Q2 2020 Snapshot which includes the status of the residential and commercial real estate markets in Ireland, key market statistics and an outlook for the remainder of 2020.
The number of units in the residential planning system decreased by 27% between Q1 and Q2 2020, with commercial schemes down 25%. While the initial effects of the Covid-19 pandemic on the real estate sector are still being realised, the drop in the number of applications being granted permission during the quarter is most likely a direct implication of the with Department of Housing making orders to add 56 days to the statutory time period for processing planning applications, with such orders needed as a measure to deal with the operational effects of the necessary public health measures implemented by the Government.
Residential Market Outlook
In the medium term, DRE expect residential rental demand to remain relatively stable. As the short-term softening eases, it is expected that demand will return as stock is absorbed along with wider limitations in affordability of the sales market. All of this is likely to increase rental demand due to limited new stock coming to market in key locations.
DRE anticipate that a significant reduction in the requirement for office space in the longer term is unlikely. Whilst flexible and remote working are set to become more widespread, it is unlikely to shift the way the traditional office is perceived and could in fact strengthen the perception of the office space as a ‘place to work’ and ‘do business’.