Dublin is one of the best places in Europe - if you're a property investor
The Irish capital has been ranked among the top 10 cities in Europe for development.
DUBLIN IS AMONG the 10 best cities in Europe for real estate investment, a new study has found.
According to research from PwC, Dublin is the seventh best European city for property investment and development – although it was no longer a good “opportunistic” target for US private equity firms looking to make a quick killing.
Berlin was ranked first in the study, which evaluated the most desirable cities for investment and development in Europe. Frankfurt, commonly viewed as a competitor for Dublin for post-Brexit investment, was tied in second place with Copenhagen.
While the report praised Dublin’s skilled, English-speaking workforce, the position of seventh was a drop from fourth last year and third the year before that.
Although Brexit was identified as a potential opportunity, with Dublin poised to pick up investment, it was also a risk as the Irish economy would likely be hit if the UK was to go into a recession.
The PwC study polled more than 800 real estate professionals throughout Europe. They identified another potential trouble spot for the Irish capital: that its infrastructure is not keeping pace with the growth in the city.
“It has had seven years of almost no domestic investment in new infrastructure and education, and projects like the Metro North, which would serve the airport, have yet to materialise,” the report said.
A CG render of the long delayed Metro North
The study also looked at the city’s housing shortage. While it is a sore spot domestically, respondents said that the housing shortage could lead to good options for investors.
It was thought that the private rented sector and student housing presented “huge opportunities” over the next three to five years.
Fully recovered
PwC Ireland real estate tax leader Ilona McElroy said that Dublin’s property market is ‘close to fully recovered’.
“Investors see Dublin as a good location for stable income with tenant demand from growing companies being healthy,” he said.
“The city has developed strong niches in financial services, US tech companies and aviation leasing and its airport is exceptionally well-connected to the UK and the US.”
He added: “Retail is also a hot topic in Dublin with city centre streets, shopping centres and retail parks being targets for big investors over the last two years.”
The PwC report comes the day after a the release of the third quarter ‘Ireland Commercial Property Monitor’, which was compiled by the Society of Chartered Surveyors Ireland alongside the Royal Institute of Chartered Surveyors.
About 70% of respondents said that the Irish property market is at a ‘mid upturn phase’, in which there is still value to be had, although 14% felt that a peak may be near.
