Dublin ranks in 3rd place out of 31 European Cities reviewed in the 2019 PwC/ULI Emerging Trends in Real Estate Europe report, published in Ireland today.
The report is based on the opinions of nearly 900 real estate professionals including investors, developers, lenders, and advisors, in Europe (including Ireland).
Lisbon takes the top spot for 2019, up from joint 11th place in 2018, followed by Berlin (2nd), Dublin (3rd), Madrid (4th) and Frankfurt (5th). Nearly half (44%) of all respondents say Brexit will increase real estate investment in the rest of the EU, while 78% of all respondents say Brexit will decrease real estate investment in the UK.
According to the report, the world’s leading tech companies are expanding at pace in Dublin and explains why the city is so high in the rankings. Dublin is several years into its recovery, but PwC believe the city still has potential despite some questions over supply picking up.
Dublin’s success is not just down to international demand, domestic occupiers have also been very active acquiring space in the last 12 months. Sites around Dublin airport and Dublin Port are also tipped for strong growth in logistics.
Brexit is a factor also with Ireland’s exporters and retailers preparing to reconfigure supply chains. The report notes two cities as potentially benefiting from Brexit ‘Amsterdam and Dublin as back-office locations’. These capitals are also seen as offering better value than such European gateways as Paris and Berlin.
Speaking this week, Real Estate Leader at PwC Ireland, Joanne Kelly said, "The last five or so years has seen a remarkable shift by investors towards alternative real estate, or ‘niche’ sectors. In part this is clearly driven by where we are in the cycle and the search for income. But it is also a response to the innovation that is disrupting the more traditional sectors and a number of long term trends such as demographics and urbanisation."
She added, "Investors are seeking greater exposure to sectors that are supported by strong, more predictable demographic and infrastructure drivers, such as residential related sectors - and this requires them to focus more on the operational management of the assets."