New data released by the Central Statistics Office shows that the volume of retail sales grew by 5.5% in the year to July 2006, while the value of retail grew by a strong 7.4% in the same period. This is against a backdrop of relatively weak consumer spending trends elsewhere in Europe.

Impressive consumer statistics like this continue to encourage indigenous retailers to expand and enhance their facilities throughout the country, while an ever increasing number of overseas traders continue to open and expand operations here, the report claims.

According to the CBRE analysis, phenomenal population growth in Ireland in the past five years is the driving factor behind significant retail development throughout the country.

The quantum of shopping centre accommodation has trebled here in the last five years. There are now 147 purpose-built shopping centres in the country, extending to over 1.5 million sq m. However, the increase in the provision of retail park accommodation in Ireland has been more dramatic, with the quantum of purpose-built retail parks quadrupling in the same five-year period from just over 185,000sq m in 2001 to over 800,000 at present.

A look at statistics measuring footfall and spending on Irish high streets, in shopping centres and retail parks illustrates a strong degree of consumer confidence in the economy.

An average of just over 12,375 shoppers per hour have been recorded on Dublin's Henry Street on Saturdays in the second quarter of each year since 2001, while an average of just over 13,500 shoppers per hour have been recorded on Grafton Street on Saturdays in the same period.

The report claims this is a very impressive performance for the capital's high streets, considering the phenomenal competition that has emerged as a result of the growth in new retail accommodation in the suburbs of Dublin, not to mention provincial locations in the last five years in particular.

The strength of the retail market has resulted in a sharp rise in rental levels during the past few years . . . a factor which in turn has fuelled investor demand for retail opportunities. While rents continue to appreciate (Zone A rents on Grafton Street are likely to peak at 10,000 per sq m on a Zone A basis following a recent letting to Karen Millen), now that supply and demand are broadly coming into equilibrium in the market, CBRE expects the unsustainable pace of rental appreciation to ease. More modest rental growth is predicted in the short to medium term.

Finally, the report warns that while there would appear to be no major concern at the quantum of shopping centre accommodation planned for construction, there are undoubtedly concerns starting to emerge about the sustainability of the new and proposed retail park projects, particularly in provincial locations without the catchment populations to sustain them.

The report points out that when you consider the potential quantum of retail park accommodation that will be provided when schemes currently under construction or granted planning permission are built out, on a county basis, it can be seen that some counties appear to be in danger of being oversupplied with retail parks in the medium to long term.