Here’s a statistic to focus the mind – one in every 40 Dubliners is a millionaire! If you want to find a smart place to invest then Dublin should definitely be on your radar. The Irish capital is becoming an increasingly popular and high profile place to live. Commercial property investment in Ireland reached €930m in the first quarter of 2018, according to property consultants CBRE. Over the past year, Dublin property prices have risen by 11% and rents are as high as they were at the height of the boom in some parts of the city. The worry might be that the market is overheating, but so far it shows no signs of slowing; indeed, many of the key drivers remain very much in place suggesting there is still plenty of upside.
Rents are sky high with a positive forecast over the next few months. Average rents in Dublin hit a new record high of €1,875 a month in March this year, according to Daft.ie. This is tough for renters, but music to the ears of Dublin’s landlords. Comparing the cost of rent versus mortgage costs suggests that, for many, it makes more sense to buy than to rent. Clearly not everyone is able to raise the deposit and pay for the additional professional charges associated with buying a property, but for those that can it makes the prospect of a buy-to-let look pretty irresistible.
Dublin’s population has been on the rise for some time now and is showing no sign of abating. The Central Statistics Office predicts the Dublin Region’s population will 2.1 million by 2020 and smash through 5 million by 2031. New residents are seduced by the excellent public transport systems, fine dining options, wonderful parks and green spaces and the fact that Dublin is a manageable size for a city – all factors that are good when considering quality of life. Lower corporate tax rates don’t hurt either.
Recent surveys have suggested that Dublin ranks very highly in terms of popularity on a global comparison. It stands out as one of the friendliest cities in the world and scores ahead of London in terms of quality of life, cost of living and how healthy its residents believe themselves to be.
Attracting High Rollers
Rich investment banker types have many reasons to be tempted by a move to Dublin. Proximity to London is a big plus, it’s still in the EU and English speaking to boot. In July we learnt that Bank of America Merrill Lynch is expected to start moving its staff to Dublin (which will become its EU headquarters after Brexit) over the summer.
Dublin pretty coastal suburb of Blackrock is proving particularly attractive with London’s well-heeled types who appreciate the fact that renting is in the area costs just 20% of what the equivalent property would fetch in London’s Kensington & Chelsea. Indeed, approximately 16% of Blackrock’s working population works in finance – something that speaks volumes.
All About Supply And Demand
Quite simply, there aren’t enough top-end properties in Dublin to go around. The city is experiencing rapid growth – especially from well off professionals employed by foreign multinationals. Tight regulation has meant that Dublin has had to expand outwards rather than upwards (no sky scrapers allowed) so housing remains in short supply and prices have been driven north as a result.
For centuries, Dublin has been a warm and welcoming city, famous for the friendliness of its people and its craic – a unique mixture of humour, acerbic wit, intelligence and repartee. This character has drawn writers and intellectuals for generations and remains a draw. But on top of all of that, today’s thriving financial services sector, low tax rates and increasingly upmarket lifestyle are all factors likely to continue to attract millionaires to Ireland’s capital. Bottom line, most indicators suggest that Dublin is set to remain an attractive place to invest for buy-to-let for the foreseeable future.