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Dublin’s Luxury Apartment Prices Could Have Peaked, Reports Irish Independent

The Irish Independent recently reported that the sale of Dublin’s Marker Residences is being negotiated at a price below its latest valuation, suggesting luxury apartment prices may have reached their peak. According to Jon Ihle’s article, the deal between Ires Reit and Irish Life is indicative of a changing market that could affect both homeowners and investors.

The newspaper highlighted that Ires bought the block for €50 million in 2014 and revised its valuation up to €73 million in 2019, reflecting a rapidly rising property market. However, the current deal is being discussed at a price of €65 million, which is significantly below its peak valuation.

The Irish Independent went on to say that the market for commercial real estate transactions has softened considerably in recent months, with economic uncertainty and rising interest rates pushing valuations down. Property advisers JLL Ireland reported large-scale residential prices dropped 3.7% in Q1 2023 and had fallen 7.1% over the past 12 months.

The newspaper further mentioned that if the Marker Residences deal closes at the current price level being discussed, it could force a write-down across all Ires Reit assets within months, potentially triggering a domino effect across the entire market. This news, as reported by the Irish Independent, suggests that luxury apartment prices in Dublin may have reached their peak and could now be on the decline.

The Irish Independent article is here: