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Dublin’s ‘Silicon Docks’ is the European HQ for so many leading technology companies, such as Google, Facebook and Linkedin.

Irish News, Blogs and Market Reports

  • Market News

    National rent prices jumped 1.2% in the last year despite impact of Covid-19

    National rent prices jumped 1.2% in the last year despite impact of Covid-19 The latest Daft.ie report shows that the industry has ‘bounced back’ from Covid-19. THE AVERAGE NATIONAL rent price has continued to rise year-on-year, despite the impact of Covid-19 on the rental market for much of 2020. New statistics published by property website Daft.ie show that rents across the country rose by an average of 1.2% in the year to the end of July. The average price of rent in Ireland now stands at €1,412 per month. Dublin continues to see the most expensive rents in Ireland, with the average cost of rent €2,030 per month, a marginal increase of 0.2% compared with July last year. The rest of Leinster saw the highest year-on-year rise, with a 3.3% increase from July 2019, bringing the average monthly cost of rent in the region to €1,219 last month. Munster saw a 2.7% rise in the year to July, when average rents reached €1,069 per month. Only Connacht-Ulster saw a year-on-year decrease, with a 0.6% fall to the end of July bringing the average cost of rent in the two provinces to €862 per month. The report also analysed house prices across the country over the course of the last 12 months, showing that the average cost of buying a property in July was €259,733, unchanged compared with last year. The average cost of buying a home rose by 1.2% in Dublin to €378,881 and by 2.1% in Leinster to €240,852 in July. However, average prices fell by 2.8% annually in Munster to €212,382 and in Connacht-Ulster by 2.5% annually to €176,827. Economist at Trinity College Dublin and author of the report Ronan Lyons explained that Covid-19 policy supports for owner-occupiers and tenants appeared to be behind the lack of drop in house and rent prices. But he suggested that this could change in the future.     “Given the potential for successive waves of Covid-19 in Ireland, this may be tested in the coming quarters,” he said.   “As it stands, both sale and rental segments appear to have weathered the initial impact of the pandemic and the underlying shortage – especially of rental accommodation – remains.”   Raychel O’Connell, Communications Manager at Daft.ie, Raychel O’Connell, said the industry had “bounced back” following price drops in April.   “Despite the rising prices in sales and the significant increase of supply in rental, demand for properties in Ireland is as strong as ever,” she added.   Commenting on the report, Sinn Féin housing spokesperson Eoin Ó Broin said that both rental and buying costs remained too high and that affordable supply was still too low.   “The government cannot afford to wait and see what the private market will deliver,” he said.   “Budget 2021 provides the government with an opportunity to take decisive action and dramatically increase capital spending the delivery of social and affordable homes on public land.”   If you are thinking of investing in property as a source of alternative income, ​ why not contact us today to discuss your requirements in more detail?​ ​ Phone: +353 86 325 0048 I Email:info@spirecapital.ie Source: The Journal – Stephen McDermott
    Author: Conor Fitzpatrick
    Read Time: 6 min
  • Covid-19

    Pandemic set to cause major shortfall in housing supply, warns new study

    Pandemic set to cause major shortfall in housing supply, warns new study The study from the Banking & Payments Federation Ireland shows that new builds have been badly impacted   THE COVID-19 CRISIS has had a major impact on housing supply, according to a new report.   The weeks-long hiatus on construction work as sites shut in response to the pandemic, combined with the limits imposed by social distancing requirements, mean that new houses might only reach 14,000 in 2020 – a major shortfall.   The figures come from a study by the Banking & Payments Federation, which was published this morning.   Construction work returned several weeks ago in Phase One – but with social distancing rules in place and strict new regulations.   Dr Ali Ugur, Chief Economist at the federation, said: “Ireland’s housing supply is going to take a significant hit this year given that the construction sector stopped all activity between the end of March and mid-May as well as the fact that current activity is very much limited due to work practice restrictions as part of Covid-19 health measures.”   He estimates that before the crisis the number of new houses built would have been between 24,000 and 26,000.   However, the impact of the coronavirus pandemic means that new builds will likely be between 14,000 and 16,500 this year.   Demand The study suggests that demand for houses and mortgages might prove resilient even in the face of the economic shock from the pandemic.    Ugur said that it “may hold up better due to the important role which income levels play in housing and mortgage demand”.    Those on higher incomes, according to the study, were less likely to need the Pandemic Unemployment Payment or be on the Temporary Wage Subsidy scheme.    This meant that many of those who could afford to buy a house were least affected by the pandemic.    “Looking at these figures in the context of the mortgage market, it is earners in this same income bracket that account for the majority of those drawing down mortgages,” Ugur said.    “Given the significant and increasing share of first-time buyers in the Irish mortgage market, and income levels required to secure a mortgage, income losses during the pandemic may not have a significant effect on demand for mortgages from this cohort,” he said.    This means that the demand for new houses might be less likely to collapse in the months to come.    However, this doesn’t mean demand is unlikely to be affected at all. The full economic impact of the pandemic will still be borne out in the months to come.   The extent of Ireland’s recovery, Ugur said, will also play a role in housing demand.    Earlier this month, it was announced that Ireland Budget deficit hit €6.1 billion in May as spending on health and income supports added pressure on government finances.   If you are thinking of investing in property as a source of alternative income, ​ why not contact us today to discuss your requirements in more detail?​ ​ Phone: +353 86 325 0048 I Email:info@spirecapital.ie Source: The Journal -  Dominic McGrath
    Author: Conor Fitzpatrick
    Read Time: 6 min
  • Brexit

    Dublin Property Impact: The Benefit of Brexit

    Dublin Property Impact: The Benefit of Brexit There’s no doubt that there will be a big impact of Brexit throughout the EU’s economy with the UK being predicated by many as the biggest loser. But who will be the biggest winner? In this piece of analysis I will outline why I believe Dublin city centre and particularly the IFSC micro-economy will benefit, and how this will impact on the property market in this area. Global companies choose Dublin for access to European Financial Markets According to EY, Dublin is the preferred location in Europe for both global companies looking to grow by access the European markets, and also by UK companies looking to maintain access to this market. But why Dublin?   Post-Brexit, Ireland will be the only country in the EU which will have English as its primary language which makes it a priority location for US, UK and Asian companies whose corporate language is English. Add into the mix the young, highly-educated multi-lingual workforce available in Dublin, its attractive corporate tax status, pro-business financial regulation and it’s easy to see why Dublin is a very compelling argument for international banks and insurance companies to have their EU HQ there.   By setting up in Dublin, financial services companies can passport their products and services throughout the EU without the need for governmental regulation in each separate country. So if an Asian or American fund wants to enter the European financial services, they would just set up a European HQ or “hub”, and then distribute throughout the other jurisdictions. Similarly the UK, which has pre-Brexit access to these markets, but after Brexit these rights will be removed, irrespective of Deal or No Deal.   This is why Dublin is the no.1 location for UK financial services companies looking to move more assets and staff to Dublin to maintain access to the important European markets.   It’s no secret that companies like Barclays, JP Morgan, Bank of America have invested heavily in Dublin for the long-term. They have moved billions of euro in capital, and have also entered long term office leases as they transfer their highly paid UK workers to Dublin and hire additional local staff. For example, in 2019 Barclays Bank moved €190bn worth of assets to Ireland, with UK-based workers to follow.   The IFSC isn’t a short term fad, but is a long term government backed strategy to provide simplified and stable access to European financial services markets. From humble beginnings back in the early 1990s, Dublin’s International Financial Service’s Centre (IFSC) has now over €5 trillion worth of asset under administration. The global bank Citibank have a presence in Dublin for over 50 years and which now employers over 9,000 at its European hub. Their competitors also have a large presence in Dublin including J.P. Morgan (c.1,000 employees), State Street (c. 2,500), BNY Mellon (c.1,700).     IFSC Fun Facts and Figures 500+ banks, insurers, finance and fund service companies Over 1,000 different fund managers Average salary of €60,100 (c. €3,500 net per month) Total Direct Employment of over 38,000 Comprises 5% of all EU 27 cross-border financial services activity All the global advisers: KPMG, EY, Grant Thornton, Deloitte, PwC All the global legal firm: Dentons, Walkers, DLA Piper Brexit Impact on Dublin Property Market As more companies are attracted to Dublin because of Brexit, this will increase the demand for both local talent and the demand for local rental housing. This will mean that salaries will and rent will both rise.   The influx of overseas workers has exacerbated Dublin’s already chronic housing shortage and has led to very high demand for rental accommodation. As property prices are growing slower than the rate of the rents, the result is that Dublin has now the highest rental yields in any major European capital city.   The average cost of a 1 bed apartment in Dublin 1 (which includes IFSC) is €250,000 and generates an average rent of c. €1,605 resulting in a 7.7% yield. This monthly rent is still less than 50% of an average IFSC workers net income which is affordable considering the high quality, close proximity to their place of work and is often shared with a partner. With new insurers and banks companies coming to Dublin to access the European markets, this is leading to further increases in demand and upward pressure on rent, which is only compounded by the higher than average salaries in the IFSC. So whilst IFSC rents are higher than other parts of the Dublin, the average salaries are higher and increasing at a higher rate than the rents. The result is long queues for newly vacant apartments which I predict will last long after Brexit.   Contact me at colin@spirecapital.ie to see how Spire Capital can help you capitalise on IFSC property market.   Sources: www.spirecapital.ie www.daft.ie www.ifsc.ie www.irishfunds.ie
    Author: Colin O'Regan
    Read Time: 7 min

EU’s fastest growing economy has huge tenant demand and a chronic undersupply of rental properties.

Spire Capital Ltd – Making your money work for you 

We focus on strategies and asset classes in which we can generate passive income as well as the potential to enhance value. We see a local presence in Dublin as a strategic key to access local investments,build relationships with sellers and market partners and identify market trends at an early stage. Spire Capital is an important contact for overseas investors.

We specialise in finding value for investors in the Dublin Property Market

 

  • Rental yields: For the 3rd year in a row Ireland has been named the most attractive Destination for Europe’s Buy to Let investors. Highest rental yields in Europe
  • Economy: Ireland is expected to continue to be the fastest growing economy in the eurozone until at least 2024
  • Tenant demand: Strong demand from tenants, shortage of supply and a rising population means Dublin needs at least 9,000 new apartments to meet demand
  • Tech giants: Dublin is expanding very fast as tech giants are turning this city into one of the hottest property markets in the world

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