After a period of unprecedented growth, the Irish commercial property market is beginning to slow down to what many industry observers suggest are more sustainable and stable rates.

Rents have stabilised since the start of the year, with no change in any sector in the second quarter. Yields, which had fallen sharply in response to the strong rental growth in recent years, have also stabilised, or in the case of the office market, ticked up slightly.

Hamilton Osborne King auctioneers suggests that with economic growth set to slow down this year, it is likely that the performance of the property market will begin to stabilise. Rental growth is likely to be more subdued, particularly in the office market. Meanwhile commercial property is continuing to come on-stream in the suburbs, while there is also a significant amount of space in the pipeline for the city centre, particularly in the docklands area.

The retail sector is expected to product the strongest returns in the short to medium term, it says.