New figures have predicted Dublin's prime office and retail rental values will rise by 7% this year.

According to a new commercial property survey by the Society of Chartered Surveyors Ireland (SCSI), both office and retail rents in Dublin will increase, while residential land development values will jump by 15%.

In the rest of the country, prime office rents are expected to increase by around 4%, while retail rents will rise by 8% in Leinster (excluding Dublin), 5% in Connacht/Ulster, and 1% in Munster.

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The commercial property sector also performed strongly in 2016 with growth recorded across all sectors.

In 2017, the value of residential development land is expected to increase by 15%, while a 12% rise is forecast for office development sites this year.

Claire Solon, President of the SCSI, said: "The ability of the investment market to weather many potential storms was a highlight of 2016 and it's clear Ireland is viewed as a safe harbour for international funds in the wake of numerous uncertainties.

"In addition to international events, domestic issues such as solving the housing crisis or changes in the taxation structure for Section 110's will all impact on investment returns and capital growth expectations going forward. The market likes certainty."

(LM/JP)