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Property prices drive garage owners out of Dublin
Martin Brennan



UP TO 130 garages and filling stations have closed in Dublin in the past five years as rising property values and traffic congestion bring huge changes to the retail motor industry.

The closures are particularly noticeable within that part of the city bounded by the Royal and Grand Canals. Some have closed permanently, others as part of a business plan to relocate to more suitable and more 'user-friendly' areas.

In the past two years filling stations have closed down at an alarming rate right around the capital as the owners realise the value of their land. And, the rate of change is accelerating.

Cyril McHugh, chief executive of the Society of the Irish Motor Industry, says that the old order is changing. He expects to see a growth of motor parks like Airside at Swords where 17 franchises continue their annual motor weekend today.

McHugh says he believes another dedicated motor park will be developed in the Carrickmines area and points to the 'cluster' development of motor retailers in Sandyford industrial estate, Motor Mile in Waterford and the old Dublin road in Wexford.

He believes there will be a continuing trend where other dedicated motor parks will be developed on the outskirts of major towns.

One motor industry source estimated that upwards of 130 garages and filling stations had disappeared from Dublin city over the past five years, driven out of valuable or unsuitable locations.

As the volumes of traffic, the cost of parking and the the value of land rises, it has became economically impossible to justify the amounts of space a good main franchise dealer needs to do business. It has also become more difficult for customers to get to a city-centre dealer and as more and more people are moving out to new suburban areas they are taking their business with them.

When similar economic pressures forced the retail motor industry in the US to leave high-priced urban areas, the answer was the motor mall, where a number of dealers came together to offer customers a greater range of services and brands.

Airside Motor Park currently comprises seventeen franchises spread across eight premises. More are planned to open during Spring 2007.

The new location was chosen just off the M1, near the M50-M1 junction with about 60% of all motorists in Ireland living within 90 minutes driving time.




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