According to the Investment Property Database (IPD), Irish commercial property returns accelerated to 3.3% between July and September as UK returns from the sector fell to their lowest level for 15 years. Commercial property returns in the Republic rose from 3% in Q2 2007, taking 12-month growth to 15.2%, while UK returns fell to -1.2% in September.

Irish property has historically been closely aligned with the UK, according to Angela Sheahan, IPD’s research manager, but appeared to have diverged as the British market fell.

She said: “There is a potentially similar situation; property prices are arguably overpriced, but the fact that Ireland is a much smaller market means that there is not so much supply. Fallout from the UK market would be the only reason for a slowdown, but I wouldn’t be surprised if they continued to be robust.”

Offices offered the best returns over the quarter with 4.2%, industrials offered 2.7%, followed by retail on 2.6%.