2006/Outlook: A host of property experts comment on their highlights of 2005 and give their tips for 2006.

Pat Gunne, Managing director, CBREG

What was the highlight of the commercial market in 2005? The AIB HQ investment deal which we acquired for AIB Private Bank, the Dundrum Town Centre, and the Jurys and Berkeley Court site sales to Sean Dunne which we handled for Jurys. Abroad, Quinlans buying the Knightsbridge Estate in London; Treasury in China; and Ballymore's amazing achievements in London Docklands.

What was the most important factor in the past year? The cheap cost of debt, and the unprecedented amount of capital chasing property from all sources.

What is everybody chasing and why? Everything from speculative land to "dry" fully let investments. New markets continue to emerge, with Russia likely to be the venture of the Irish for 2006. Many players are looking for value plays with "angles" - like short leases to refurbishment and redevelopment plays, higher risk geared towards the recovery in the occupier markets at a time when the "dry" investments are in huge demand and priced at a premium.

At what stage will higher interest rates affect the market? Five-year cost of money is 3.25 per cent for the euro against a floating rate of 2 per cent, so the curve upwards is not steep. The upwards movement is unlikely to impact considerably, if at all, in 2006.

What is your tip for 2006? Fix your debt. Don't be caught by cashflow when rates start moving. Invest with prudence in 2006.

Niall Gaffney, Investment manager, IPUT

What was the highlight of the commercial market in 2005? Personally, it was the successful transfer of the €80 million-plus Guinness property portfolio to IPUT. Over the last 12 months we negotiated a mutually beneficial deal for an absolute prime portfolio that included properties such as HMV on Grafton Street among others.

What was the most important factor in the past year? Continued investor and consumer confidence in the Irish economy and our economy's relatively strong position in Europe.

What is everybody chasing and why? Retail is flavour of the year, driven by a belief that consumer spending will continue to be resilient and that retailers will be willing to pay ever higher rents for bigger and better premises. The ultimate outcome of the current nationwide retail development splurge may prove very different.

At what stage will higher interest rates affect the market? Unlikely in the short or medium term, due to the relatively marginal level of the forecast increases and the prevailing weight of capital chasing scarce investment propositions. If the 9 per cent stamp duty hit in 2003 did not dampen investor appetite for commercial property investment, then a 25 or 50 basis point upward shift in interest rates will be absorbed and the market will similarly re-adjust.

What is your tip for 2006? Think about the property fundamentals first and the finance second. Follow Dublin city centre offices.

Paul McNieve, Managing director, HOK

What was the highlight of the commercial market in 2005? The opening of Dundrum Town Centre, with first Irish stores by Harvey Nichols, House of Fraser and H&M. It has set a new standard for retail development in Ireland.

What was the most important factor in the past year? The realisation of new planning policies allowing high density and tall buildings has transformed property values.

What is everybody chasing and why? Retail investment properties up to €5 million, particularly on high streets. Retail has outperformed all sectors in recent years.

At what stage will higher interest rates affect the market? Most investment property is financed by fixed rate debt rather than on variable rate. In the past three months the euro five-year fixed rate has increased by over 0.5 per cent, yet we have heard little comment, nor have we seen any let up in demand for property or any price reductions/yield increases. Sterling rates have increased by over 1 per cent in the last 12 months yet yields have hardened further. Rates can go up by at least 1 per cent before there is any effect on the market.

What is your tip for 2006? The stakes are high - take an agent's advice! As a general rule, stick to quality locations.

Peter Stapleton, Managing director, Lisney

What was the highlight of the commercial market in 2005? Sean Dunne purchasing the two Ballsbridge Jurys sites.

What was the most important factor in the past year? Continuing sound economic growth.

What is everybody chasing and why? High street retail and prime shopping centres, both city and provincial. The reason: excellent appreciation potential. Well let prime offices - the reason being that there is potential for rental growth in prime office space. In the smaller category of investors it's provincial retail and offices - the reason being that they are available in a more reasonable price bracket. Good sites - reason being plenty of demand for new residential and commercial product. Lastly, everything that is well located and the reason being it's the most solid investment.

At what stage will high interest rates affect the market? An increase of 0.75 to 1 per cent will need to be put in place.

What is your tip for 2006? Sites close to new transport routes and nodes. 1970s office buildings in good locations with scope for redevelopment. Older more spacious apartments.

Fintan Tierney, Managing director, DTZ Sherry FitzGerald

What was the highlight of the commercial market in 2005? The chasing by several bidders of Jurys Doyle Group culminating in the sale of the Berkeley Court and Jurys hotels in Ballsbridge to Sean Dunne. This is one of the most prestigious locations in the country and in the medium term, the levels paid will be seen to be justified.

What was the most important factor in the past year? Low interest rates, full employment, increasing population and strong end-user demand. This has resulted in the buoyant property market. The most important factor is the demographic profile in the economy.

What is everybody chasing and why? Ready-to-go development sites are attractive. Well let investments are very popular.

At what stage will higher interest rates affect the market? If rates rise more than 0.5 per cent in the next 12 months, then the market may not have factored in a rise higher than this. However, all indications from the ECB would suggest that it is highly unlikely that rates will rise more than 0.5 per cent in the next 12 months.

What is your tip for 2006? The hot tips are for clients! However, nationally, locations outside of Dublin, particularly Cork city, offer good opportunities. Internationally, as we forecasted last year, selective investment in Germany is a good tip for 2006.

Nicholas Corson, Director, Finnegan Menton

What was the highlight of the commercial market in 2005? Dundrum Town Centre. Also the sale of the Digital Hub lands in Thomas Street for €118 million (we had to be innovative in the approach, seeking tenders on the basis of developers handing back completed office space plus over €70 million).

What was the most important factor in the past year? Confidence. This confidence has been well founded and supported by strong economics and should continue in the same vein in 2006.

What is everybody chasing and why? All sectors and most locations. A lot of money is chasing office investments with shorter unexpired terms and refurbishment opportunities. Why? Absence of long let investments and a strong recovery in the office occupier market. Large pre-letting activity in 2004 expanded with increased demand, not only in the city centre, but also along the Dart and Luas lines.

At what stage will higher interest rates affect the market? I do not forecast higher interest rates affecting the market at all. The market has already factored in the expected 0.25 per cent increase in December and is expecting one or two further small incremental increases in 2006. Rates should remain historically low.

What is your tip for 2006? Offices will be the top performer in 2006.

John Mulcahy, Managing director, Jones Lang LaSalle

What was the highlight of the commercial market in 2005? The AIB HQ deal. Also the Ilac for price and complexity, as well as size.

What was the most important factor in the past year? Volume of money - we did over €1 billion of deals. The depth of demand from high net worth individuals, syndicates, private banks and (making a return) the institutions. Prices continued to escalate throughout theyear, giving stronger returns than might have been anticipated.

What is everybody chasing and why? Some investors like "dry" income, but can't get it or can't afford it here. So they are seeking it in the UK or Europe where yields look more favourable. The geographical reach of the Irish Investor continues to broaden.

At what stage will higher interest rates affect the market? Five-year SWAPs have already increased by 50bps in the past three months. It will need at least another 50bps before values will suffer.

What is your tip for 2006? There is no particular reason to believe that yields will be under pressure, unless the German recovery speeds up dramatically. The institutions are coming back in to the market more strongly and accepting that, if they are to do anything other than sell (and many have sold all they can), they will have to compete at the keener yields which the market demands. Retail may have maxed-out and domestic investment volumes may be lower.

Terry Cunningham, Managing director, Cunningham Auctioneers

What was the highlight of the commercial market in 2005? A very significant investment sale - details of which are yet to be made public.

What was the most important factor in the past year? Continuing low interest rates.

What is everybody chasing and why? Good quality secure investment properties - loads of money chasing too little availability - with significant lowering in yields.

At what stage will high interest rates affect the market? I believe it would take a series of significant rate hikes, which is unlikely, so any rises are unlikely to seriously impact on the market.

What is your tip for 2006? Caution. Too much money chasing too little property inevitably leads to purchasers investing in marginal property or marginal areas. You can't beat the old adage "location, location, location". Combine that with a little caution.

What was the highlight of the commercial market in 2005? The AIB HQ investment deal which we acquired for AIB Private Bank, the Dundrum Town Centre, and the Jurys and Berkeley Court site sales to Sean Dunne which we handled for Jurys. Abroad, Quinlans buying the Knightsbridge Estate in London; Treasury in China; and Ballymore's amazing achievements in London Docklands.

What was the most important factor in the past year? The cheap cost of debt, and the unprecedented amount of capital chasing property from all sources.

What is everybody chasing and why? Everything from speculative land to "dry" fully let investments. New markets continue to emerge, with Russia likely to be the venture of the Irish for 2006. Many players are looking for value plays with "angles" - like short leases to refurbishment and redevelopment plays, higher risk geared towards the recovery in the occupier markets at a time when the "dry" investments are in huge demand and priced at a premium.

At what stage will higher interest rates affect the market? Five-year cost of money is 3.25 per cent for the euro against a floating rate of 2 per cent, so the curve upwards is not steep. The upwards movement is unlikely to impact considerably, if at all, in 2006.

What is your tip for 2006? Fix your debt. Don't be caught by cashflow when rates start moving. Invest with prudence in 2006.

What was the highlight of the commercial market in 2005? Personally, it was the successful transfer of the €80 million-plus Guinness property portfolio to IPUT. Over the last 12 months we negotiated a mutually beneficial deal for an absolute prime portfolio that included properties such as HMV on Grafton Street among others.

What was the most important factor in the past year? Continued investor and consumer confidence in the Irish economy and our economy's relatively strong position in Europe.

What is everybody chasing and why? Retail is flavour of the year, driven by a belief that consumer spending will continue to be resilient and that retailers will be willing to pay ever higher rents for bigger and better premises. The ultimate outcome of the current nationwide retail development splurge may prove very different.

At what stage will higher interest rates affect the market? Unlikely in the short or medium term, due to the relatively marginal level of the forecast increases and the prevailing weight of capital chasing scarce investment propositions. If the 9 per cent stamp duty hit in 2003 did not dampen investor appetite for commercial property investment, then a 25 or 50 basis point upward shift in interest rates will be absorbed and the market will similarly re-adjust.

What is your tip for 2006? Think about the property fundamentals first and the finance second. Follow Dublin city centre offices.What was the highlight of the commercial market in 2005? The opening of Dundrum Town Centre, with first Irish stores by Harvey Nichols, House of Fraser and H&M. It has set a new standard for retail development in Ireland.

What was the most important factor in the past year? The realisation of new planning policies allowing high density and tall buildings has transformed property values.

What is everybody chasing and why? Retail investment properties up to €5 million, particularly on high streets. Retail has outperformed all sectors in recent years.

At what stage will higher interest rates affect the market? Most investment property is financed by fixed rate debt rather than on variable rate. In the past three months the euro five-year fixed rate has increased by over 0.5 per cent, yet we have heard little comment, nor have we seen any let up in demand for property or any price reductions/yield increases. Sterling rates have increased by over 1 per cent in the last 12 months yet yields have hardened further. Rates can go up by at least 1 per cent before there is any effect on the market.

What is your tip for 2006? The stakes are high - take an agent's advice! As a general rule, stick to quality locations.

What was the highlight of the commercial market in 2005? Sean Dunne purchasing the two Ballsbridge Jurys sites.

What was the most important factor in the past year? Continuing sound economic growth.

What is everybody chasing and why? High street retail and prime shopping centres, both city and provincial. The reason: excellent appreciation potential. Well let prime offices - the reason being that there is potential for rental growth in prime office space. In the smaller category of investors it's provincial retail and offices - the reason being that they are available in a more reasonable price bracket. Good sites - reason being plenty of demand for new residential and commercial product. Lastly, everything that is well located and the reason being it's the most solid investment.

At what stage will high interest rates affect the market? An increase of 0.75 to 1 per cent will need to be put in place.

What is your tip for 2006? Sites close to new transport routes and nodes. 1970s office buildings in good locations with scope for redevelopment. Older more spacious apartments.

What was the highlight of the commercial market in 2005? The chasing by several bidders of Jurys Doyle Group culminating in the sale of the Berkeley Court and Jurys hotels in Ballsbridge to Sean Dunne. This is one of the most prestigious locations in the country and in the medium term, the levels paid will be seen to be justified.

What was the most important factor in the past year? Low interest rates, full employment, increasing population and strong end-user demand. This has resulted in the buoyant property market. The most important factor is the demographic profile in the economy.

What is everybody chasing and why? Ready-to-go development sites are attractive. Well let investments are very popular.

At what stage will higher interest rates affect the market? If rates rise more than 0.5 per cent in the next 12 months, then the market maynot have factored in a rise higher than this. However, all indications from the ECB would suggest that it is highly unlikely that rates will rise more than 0.5 per cent in the next 12 months.

What is your tip for 2006? The hot tips are for clients! However, nationally, locations outside of Dublin, particularly Cork city, offer good opportunities. Internationally, as we forecasted last year, selective investment in Germany is a good tip for 2006. What was the highlight of the commercial market in 2005? Dundrum Town Centre. Also the sale of the Digital Hub lands in Thomas Street for €118 million (we had to be innovative in the approach, seeking tenders on the basis of developers handing back completed office space plus over €70 million).

What was the most important factor in the past year? Confidence. This confidence has been well founded and supported by strong economics and should continue in the same vein in 2006.

What is everybody chasing and why? All sectors and most locations. A lot of money is chasing office investments with shorter unexpired terms and refurbishment opportunities. Why? Absence of long let investments and a strong recovery in the office occupier market. Large pre-letting activity in 2004 expanded with increased demand, not only in the city centre, but also along the Dart and Luas lines.

At what stage will higher interest rates affect the market? I do not forecast higher interest rates affecting the market at all. The market has already factored in the expected 0.25 per cent increase in December and is expecting one or two further small incremental increases in 2006. Rates should remain historically low.

What is your tip for 2006? Offices will be the top performer in 2006.

What was the highlight of the commercial market in 2005? The AIB HQ deal. Also the Ilac for price and complexity, as well as size.

What was the most important factor in the past year? Volume of money - we did over €1 billion of deals. The depth of demand from high net worth individuals, syndicates, private banks and (making a return) the institutions. Prices continued to escalate throughout the year, giving stronger returns than might have been anticipated.

What is everybody chasing and why? Some investors like "dry" income, but can't get it or can't afford it here. So they are seeking it in the UK or Europe where yields look more favourable. The geographical reach of the Irish Investor continues to broaden.

At what stage will higher interest rates affect the market? Five-year SWAPs have already increased by 50bps in the past three months. It will need at least another 50bps before values will suffer.

What is your tip for 2006? There is no particular reason to believe that yields will be under pressure, unless the German recovery speeds up dramatically. The institutions are coming back in to the market more strongly and accepting that, if they are to do anything other than sell (and many have sold all they can), they will have to compete at the keener yields which the market demands. Retail may have maxed-out and domestic investment volumes may be lower.

What was the highlight of the commercial market in 2005? A very significant investment sale - details of which are yet to be made public.

What was the most important factor in the past year? Continuing low interest rates.

What is everybody chasing and why? Good quality secure investment properties - loads of money chasing too little availability - with significant lowering in yields.

At what stage will high interest rates affect the market? I believe it would take a series of significant rate hikes, which is unlikely, so any rises are unlikely to seriously impact on the market.

What is your tip for 2006? Caution. Too much money chasing too little property inevitably leads to purchasers investing in marginal property or marginal areas. You can't beat the old adage "location, location, location". Combine that with a little caution.