Although it warns of certain short-term challenges, a recent analysis from BNP Paribas Real Estate Ireland highlights some new positives for the capital's office sector.

Compared to the previous quarter, 48,000 square meters of office space in Dublin were leased during the three-month period. It is evident from the research that 'traditional' industries like professional and financial services continue to have high demand.

According to John McCartney, Director of Research at BNPPRE, "the continuous improvement in take-up is an important first step towards a market recovery."

"However, with a significant pipeline of new space already under construction, vacancy is likely to tick-up further in the short-term, keeping pressure on rents," he stated.

In a recent report Dublin's office vacancy rate is among the highest in Europe at the moment. The study lists several obstacles that still need to be overcome despite the improvement in the third quarter.

For instance, between July and September, the tech industry only made up 7.1% of office space, compared to 51% between 2017 and 2021.

The 'back-to-the-office' dynamic seems to have stalled, according to the report, which could have an effect on office demand.

Sublets or assignments, which do not deduct from available space, accounted for almost half of the take-up during the three-month period.