40% of offices in Dublin's City Centre changed hands during the last three years

A glut of supply has met growth in demand...

More than a quarter of all office space in Dublin has changed owner during the past three years according to a new report from Savills Ireland.

This rate of turnover has been described as "extraordinary," as almost 40% of prime office space in central Dublin changed hands during the period.

Institutional investors and the new stock market-listed Reits have become the biggest buyers of office property in the city since the beginning of last year, accounting for 40% of transactions by volume and 80% by value.

John McCartney, the economist who is Savills Ireland's director of research, said that this pattern reflected a glut of supply as the National Asset Management Agency (NAMA) and other lenders put assets linked to non-performing loans on the market.

Strong growth in services created demand for these premises.

Mr McCartney added that he expects headline office rents to increase by 14% by the end of 2016.

Foreign buyers have become more active in the market, they accounted for only 29% of purchases in 2013 - this rose to 68% during the first quarter of 2016.