Features of the development of the real estate market in Ireland

Until 2020, according to the Irish Central Statistics Office, real estate prices rose: from 2013 to 2019, prices rose by 56%.
Data on price dynamics for 2020 so far exceed expectations.

It is already clear that Dublin property prices have remained at the same level last year (for more details, see The Irish Times article dated January 4, 2021).

In the profitable real estate market, large foreign investors, who began to look closely at the Dublin market even before 2020, will play an increasingly important role. Here are just a few examples of transactions involving well-known foreign players.

Deutsche Bank acquires Westend Retail Park in Dublin for €148m

The Heitman group from the USA bought 214 apartments in Dublin for €52 million.

The German Patrizia Foundation is investing €52.5 million in a building in Dublin’s docks.

The German company Union Investment buys a newly built office in Dublin for €190 million.

Swiss Life asset managers have decided to invest €27 million in Dublin.

Rates and profitability

Economic growth naturally led to a significant increase in rental rates in Dublin. In 2019, the capital of Ireland was among the top 5 European capitals in terms of rental prices (report by Employment Conditions Abroad International (ECA)). Given the lack of housing in the city, especially in the central regions, one should not expect a change in the situation.

According to a Daft.ie report, the average monthly rent in the country is €1.3k. Rates are higher in Dublin. For example, renting an apartment with three bedrooms in the suburbs of Dublin will cost €1.7–2.2 thousand, within the city – €1.8–2.6 thousand.

If we talk about the profitability of objects, then in Dublin it will vary from 6 to 10% depending on the type and individual characteristics of the object. The most interesting, both in terms of current profitability and prospects for growth in value, are small tenement houses (for six to ten apartments) in the city center.