Stephen Donnelly (Wicklow, Social Democrats)
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493. To ask the Minister for Jobs, Enterprise and Innovation the driving factors her Department has identified in the increases with regard to commercial office rents in Dublin; and if she will make a statement on the matter. [33409/16]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The growth in demand for office accommodation is due in part to our continued success in attracting new foreign direct investment and the recovery in the economy more generally. The increasing demand as the economy returns to growth is having an impact on commercial offices rents in Dublin. Commercial rents for office space have increased since the end of 2012, following a period when office rents in Dublin almost halved over the period 2008-2012 post the property crash.

The availability of cost effective and flexible property solutions continues to play a key role in supporting enterprise growth and expansion and the attraction of new investment into Ireland. ESRI research undertaken in 2015 shows the high level of demand for commercial property amongst FDI firms - 70 per cent of the take-up of such office space in Dublin in 2015 was by new and existing FDI.

The construction of new office space has turned around quickly over the last three years, from a situation where as the ESRI noted that Dublin was the only European capital where there was no office space construction between 2011 and 2013, there is now an estimated 3.1 million sq. ft. currently under construction of which 82 percent is in the city centre. Large scale developments are underway in Burlington Road, Molesworth Street and St Stephens Green, as well as in the South Docklands and the IFSC. This significant increase in office development activity should contribute to meeting demand into the future.

IDA Ireland, an agency of my Department, has valuable insights into the technical and commercial requirements of FDI spanning sectors and activities. IDA is in continuous dialogue with key stakeholders in the property market to ensure that the required competitive property solutions are available in the short and medium term.