About Dublin

Excellent yields on small apartments in Dublin ?

Gross rental yields on apartments remain excellent in Dublin, in certain areas and for certain sizes. Across the range of apartment and house sizes, Dublin city centre and around its north inner city ring road earns the best returns. The Dublin residential property market is characterised by a chronic lack of supply in affordable city centre accommodation which is driving price and rental inflation.

 

As the capital city of Ireland, Europe’s fastest growing economy, Dublin’s residential market is increasingly on the radar of investors from all over the globe. Dublin is a lively and positive looking city, and home to the European Headquarters of many of the world’s leading companies including Google, Facebook, Twitter, LinkedIn and Microsoft to name just a few. Dublin’s success in attracting these companies is a reflection of the wider success the city has had in positioning itself as a leading global business and financial hub within the EU

 

Dublin’s real estate market is increasingly on the radar of international investors.

 

“Deutsche Bank acquires Dublin’s Westend Retail Park for €148m”

 

“US property group Heitman pays €52m in deal for 214 Dublin apartments”

 

“German fund Patrizia acquires €52.5m docklands development”

 

“German company Union Investment pays €190m for newly built Dublin office asset”

 

“Swiss Life Asset Managers’ fund makes €27m Dublin purchase”

World leading tech companies are expanding at pace in Dublin

Positioned at the natural gateway to Europe, Ireland has become a key location for many of the world’s top tech multinationals including Google, Intel, Apple, Microsoft, Facebook and Oracle. As a result, Ireland’s reputation as a centre of ICT (Information & Communication Technology) and software excellence is unrivalled in Europe

 

  • 1st in the world for high-volume foreign direct investments
  • Ranked 4th in Forbes Best countries for Business
  • 12.5% corporation tax
  • Young workforce with 1/3 of population under 25 years old
  • Ranked 2nd most competitive economy in the EU

 

“HubSpot takes a 20-year lease of new building on Dublin’s South Docks” 

 

“Ireland named best country for high-value FDI for sixth year in a row” 

 

“Face­book and Google to the fore in year of cap­i­tal’s mon­ster prop­erty deals” 

 

READ MORE MARKET NEWS

Dublin rents to rise 17% by 2021 due to lack of supply

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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

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Economy

Ireland is expected to continue to be the fastest growing economy in the eurozone until at least 2024

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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

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Tech Giants

Dublin is expanding very fast as tech giants are turning this city into one of the hottest property markets in the world

Dublin has one of the Highest Rental Yields in Europe at 7% – 8%

Irish News, Blogs and Market Reports

  • Brexit

    Dublin benefits most from Brexit financial services relocations – EY

    Dublin benefits most from Brexit financial services relocations - EY Dublin remains the most popular destination for UK financial services firms looking to relocate staff or operations as a result of Brexit, according to EY.   The accounting and consulting firm has been compiling a tracker of movement of services and staff at 222 financial services firms in the UK since the Brexit referendum in 2016.   36 firms say they have either moved or are considering moving staff or services, or both, to Dublin specifically.   Of the 36, nine are universal banks, investment banks and brokerages, 18 are wealth and asset managers, while the remaining six are insurers or insurance brokers.   Luxembourg was the second most popular destination after Dublin with 29 companies relocating staff or services there, followed by Frankfurt and Paris. The EY Financial Services Brexit Tracker also finds that 43% - 95 out of 222 - of financial services firms have publicly stated they have moved or plan to move some UK operations and/or staff from the UK to Europe.   This takes the total number of job relocations since the EU referendum to almost 7,600, up from 7,500 in October 2020.   However, the number of new jobs created in the EU by these firms has remained static at around 2,850 roles.   "Our data shows that even in the grip of a pandemic, firms are still making decisions and moving people and assets to respond to the reshaped geo-political landscape," Professor Neil Gibson, Chief Economist with EY Ireland said.   "Sitting atop European charts has become an encouragingly welcome trait for Ireland, with economic growth and tax receipt data likely to mimic its performance in the tracker."   He pointed to rising costs in Ireland as a potential brake on the momentum.   "This is certainly an angle competitor cities are using to try to compete with Dublin for post-Brexit relocations," he added.   The figures also show that the volume of UK assets that have migrated to European countries since the Brexit vote has increased to almost €1.5 trillion, up from almost €1.4 trillion in October 2020.   24 firms - ten banks, nine insurance providers, and five wealth and asset managers - have so far transferred or announced an intention to transfer assets out of the UK to Europe due to Brexit. 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: RTE  – Brian Finn.
    Author: Conor Fitzpatrick
    Read Time: 3 mins
  • Expert Advice

    “Why is a multi-family home a better buy to let investment than a single-family home”

    “Why is a multi-family home a better buy to let investment than a single-family home” If you're looking to actively invest in residential property, most investors will consider two types: single-family home or multi-family home. With single-family, you'd be buying traditional homes built for one family or household. On the multi-family side, you’d be buying apartment buildings. Both are very attractive and popular but investors need to consider there are significant differences in terms of cashflow, risks, maintenance and returns on investment. We have explored some of these points below.   In single-family homes there is not a strong cash flow (unless you own several properties). Fewer units means less cash. You're only getting a handful of rent payments per month, and a large chunk of those are going toward your mortgage, maintenance costs, and admin fees. However in multi-family homes you have a better cash flow and a bigger financial cushion. The extra cash that comes with multi-family real estate can help safeguard you from loss. There's more room for error, and you may have more capital to further grow your investing business if you do it right.   “Buying a multi-family home means an instant real estate portfolio”   If you’re looking to build a big real estate portfolio single-family homes are not the way to go. A portfolio of 10 units would mean 10 negotiations, 10 mortgage applications, and 10 closings, and it would take much more time compared to multi-family properties which let you scale up with just one purchase. Buying a multi-family home means an instant real estate portfolio. You'll have at least several units on your hands, and having the cash flow and profits that come with it isn’t such a bad thing either!   “If a tenant moves out of a single-family rental, it is 100% vacant”   Yes single-family homes are a lot easier to acquire but when it comes to growth this would be slower than the multi-family homes. Also one of the disadvantages of a single-family homes is that if the property is vacant you would have zero income until the management company replaces the tenants whereas with a multi-family home they can lose a tenant but can still produce an income with the other occupied units. It is rare to see a multi-family home totally vacant. Multi-family rental owners are also far less likely to have zero rental income. If a tenant moves out of a single-family rental, it is 100% vacant. On the other hand, if a multi-family rental owner loses a tenant, its only 10% vacant. Even after that reduction in cash flow, you’ll still have 90% of your regular monthly rental income to cover the property’s mortgage and operating costs. In single-family homes, if you want to make repairs or improvements to the building it only increases the value of that one property as opposed to many in a multi-family property. Financing the purchase of multi-family homes is much easier than of single-family investment properties. The return on investment received by investing in single-family rentals tends to be higher than from other rental types; however, banks are more easily persuaded to give a mortgage to real estate investors for multi-family properties due to the risks being lower.   When you base it on a per-unit basis, the cost of constructing a multifamily property is more affordable than other types of real estate properties. It is, therefore, a more cost-efficient investment and relatively risk-free for first-time investors. If you choose to apply for a mortgage loan to build or purchase this type of property, you can expect lower mortgage financing rates.   The foreclosure rate on apartment buildings or other types of multifamily properties is lower as compared to a single-family unit. This explains why mortgage lenders can offer competitive rates for investors of this type of property. This reduces operating costs which will bring more revenue in the long run.   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 Author: Deirbhile Finn-Healy
    Author: Deirbhile Finn-Healy
    Read Time: 4 mins
  • Market News

    Investment in Dublin private rented sector remains robust in face of Covid-19

    Investment in Dublin private rented sector remains robust in face of Covid-19 Three sales totalling €391m among deals signed since lifting of lockdown, report finds A new report on the private rented sector (PRS) shows that investment remains buoyant notwithstanding the uncertainty created by the Covid-19 pandemic in the wider commercial property sector and economy.   While the imposition of the coronavirus lockdown last March resulted in the delay or postponement of a number of residential investment transactions, the latest analysis by agent Hooke & MacDonald shows that six significant PRS deals still took place in Dublin in the first half of this year. Some 440 such units with an overall value of €163 million changed hands in the period. New builds accounted for 225 of the units sold, while the remaining 215 units were drawn from existing stock.   The recent easing of Covid-19 restrictions has seen an uptick in investment activity, with a number of transactions which had been put on hold either signed already or expected to transact in this quarter.   The largest deal to have concluded in the post-lockdown period is the sale by the Cosgrave Property Group of 368 apartments at its Cualanor scheme in Dún Laoghaire to Deutsche Bank subsidiary DWS for about €200 million.   DWS was involved also in the second-largest residential transaction to have been completed since the lifting of restrictions, paying €145 million for a portfolio of 317 residential units the MKN Property Group is developing in the capital. This Prestige portfolio comprises a mix of existing and new-build apartments and houses distributed across four schemes in the north Dublin areas of Swords, Raheny, Clontarf and Killester.   Other notable deals which closed recently include the sale by developer Pat Crean’s Marlet Property Group of the 56 apartments at its Ropemaker Place scheme in Dublin 2 to German fund Real IS AG for about €46 million.   With the level of transactional activity once again accelerating, Hooke & MacDonald says it expects PRS to be Ireland’s largest investment sector in 2020. A record €2.36 billion was invested in PRS here last year – a massive 150 per cent increase on the €930 million spent on the sector in 2018. Covid-19 costs While the suspension of construction activity between March 27th and May 18th had an immediate impact on the delivery of new residential accommodation, Hooke & MacDonald says it also expects Covid-19 to compound existing difficulties relating to the cost and viability of schemes.   Commenting on this, the report says: “The immediate impact comes from the costs associated with specific Covid-19 safety measures. The recent construction lockdown has added to the problem.   “While planning permissions have increased significantly, most of these are incapable of being commenced in the foreseeable future due to a combination of reasons, most notably viability and in some cases the inability of stakeholders to bring projects forward. Viability is being impacted by a number of factors, including increasing construction costs, Government taxes and levies on new construction, costs of delays to planning and infrastructure, the cost of finance, the cost and supply of zoned land and other costs such as compliance and water charges.”   But while developers are facing a variety of challenges, the report notes that investor appetite for the forward sale and forward funding of PRS schemes remains robust.   On this, Hooke & MacDonald says: “The long-term and stable nature of the asset class, with low vacancy and voids, is ideal for investor entities with long-term investment requirements, including pension funds and sovereign wealth investors. The multi-family/PRS sector is now seen as a mainstream asset class and the increasing activity and level of transactions in it in Ireland and on a pan-European basis in recent years is witness to this.”   The attractiveness of the Irish PRS market for institutional investors is borne out by the strength and consistency of the investment yields. An examination of the transactions that have gone through in 2020 shows that they have, for the most part, come in above the guide prices for the original offerings. And when yields are compared to those generated in transactions in 2019, the yields are found to be broadly in line.   In the case of the Cosgrave Property Group’s sale of 368 apartments at Cualanor to DWS for €200 million, for example, the net yield was approximately 3.75 per cent. The Cosgraves’ sale of the 214 units in the adjoining Fairways block to DWS for €108 million in 2019 produced a similar net yield.   Commenting on the oft-repeated suggestion that big investors have been acquiring residential properties that would otherwise have been made available for sale to the traditional owner-occupier market, Hooke & MacDonald says that the majority of this new stock would not have been built in the absence of institutional forward purchase or funding. Some 5,500 new residential apartments and houses have been built in Dublin since 2016 using funding from these investors, the report notes. Future growth While Dublin and the greater Dublin area has accounted for most of the investment in Ireland’s fast-growing PRS market to date, the report says the conditions are now right for increased transactional activity in other cities.   On this, it says: “There is a significant shortage of high-quality residential accommodation in Galway for the sale and rental markets to meet the needs of its expanding population and dedicated workforce. There is good potential for the PRS sector also in Cork and Limerick.” 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 Irish Times  – Ronald Quinlan.
    Author: Conor Fitzpatrick
    Read Time: 5 mins