Dublin ranks in the Top 7 European cities for real estate investment for the last five years running. This is according to a new report published jointly by the Urban Land Institute (ULI) and PwC. The report is based on the opinions of over 800 real estate professionals in Europe, including investors, developers, lenders, agents and consultants (including Ireland).
Berlin takes the top spot for real estate investment and development for the fourth year in a row, followed by Copenhagen (Joint 2nd), Frankfurt (Joint 2nd), Munich (4th), Madrid (5th) and Hamburg (6th).
The report finds that Dublin is universally viewed as one of the cities likely to benefit from Brexit. With a skilled local, English speaking workforce, Brexit will add another few years to demand for commercial property in Ireland, including attracting banks and financial services companies, the report finds. However, concerns are noted about the potential negative effects if the UK were to go into recession as a result of Brexit, particularly on Irish tourism.
The city’s infrastructure is viewed by respondents as not keeping pace with growth and is noted as another risk where more investment is needed. The report also notes that Dublin needs more housing. Respondents see the private rented sector and student housing as a huge opportunity in the next three to five years.
Commenting on the report, PwC Ireland Real Estate Tax Leader, Ilona McElroy said, "According to the report, fuelled by consistently strong Irish economic growth, the capital’s property market is ‘close to fully recovered’ with most of the yield compression having already happened. Investors see Dublin as a good location for stable income with tenant demand from growing companies being healthy."
She added, "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. 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."
Source: www.businessworld.ie
