The commercial market throughout Galway city and the west of Ireland has proven to be resilient throughout an unprecedented 2022. After navigating through the Covid-19 pandemic, the unexpected conflict and war in Ukraine presented a new challenge to the market in early 2022. As a result, we have witnessed inflation rates nearing 10 per cent which has been felt throughout every industry, with property being no exception.
Shane McDonagh, who leads the commercial department within O’Donnellan & Joyce, commented: “We have witnessed a record year within the commercial sector with various sales and lettings throughout the city and across the Connacht region.” The most notable trend was the demand for investment properties with a secure income or strong rental potential.
This was evident with the sale of the one of the most prominent buildings within Galway city, No 37 Shop Street. Being offered with vacant possession, the property attracted strong interest from local and national investors. The property sold in the region of €1,600,000 to a local investor and has recently been let to ECCO Shoes which is a significant addition to the high street.
The company also handled the letting and advisory of the Mercy School (former Lady’s College ), Newtownsmith, which comprised a 30,000sq ft multi-storey building which was leased to the Department of Education.
There was significant local interest in several portfolio sales which included the sale of six self-contained apartments at Gort na tSamhraidh, Claregalway, along with nine self-contained retail units at The Courtyard, Claregalway Shopping Centre – both of which were sold by public auction in May 2022.
A further prominent sale which was secured during the year was of The Rio Hotel, Salthill, regarded as an iconic landmark building in Lower Salthill. The building comprised a 25-bedroom hotel and extended over 11,000square feet. A sales price well in excess of the guide price of €1,300,000 was achieved.
Other notable transactions included the sale of Stapleton’s Creche, Loughrea, Co Galway which was sold as a fully operational business, along with a 20-bedroom nursing home at Maple Court, Castlepollard, Co Westmeath, both of which were handled by Aaron O’Reilly.
The company also handled the sale of various development lands throughout the city and county including the recent sale of 3.65 acres of zoned residential land at Freeport, Barna.
The above examples demonstrate the diverse range of sales and lettings that were successfully handled by O’Donnellan & Joyce within a 12-month period. From high street investment properties and portfolio sales, to educational and childcare facilities along with various development lands, O'Donnellan & Joyce boast knowledge and expertise across all sectors.
The company's advisory services have also expanded throughout 2022. Having the benefit of being based on the ground within Galway city along with having in-depth knowledge of the entire west of Ireland, the O’Donnellan & Joyce team have acted as valuers and negotiators for national firms and State bodies ranging from Limerick to Sligo.
Having being engaged to carry out several rent reviews and lease negotiations from the beginning of the year, there appears to be strong appetite from retailers and SMEs to remain active and present within the city centre and surrounding suburbs.
This year has exceeded all expectations within the commercial sector and has proven that even in a time of uncertainty, demand for well-located commercial properties will outweigh supply. With a number of pending instructions earmarked for Q1 of the New Year – the company expects a strong and consistent start to 2023.
