Why now is the best time to invest in Dublin

George Radford, Head of Africa at IP Global

Brexit uncertainty is causing some investors to hold back on investing in UK property until the Brexit plans are finalised. This heralds a new era of opportunity for Ireland, which will now be one of the only English-speaking members of the EU. It is now the obvious jurisdiction for new business and relocations – with Dublin as the prime destination.

“There’s a lot to be said about Dublin’s favourable attributes post-Brexit, but the city presents a compelling investment case, even without the comparison,” says George Radford, Head of Africa at IP Global.

As the fastest growing economy for four years in a row and the third top location for property investment in Europe, it makes sense that IP Global’s new project was recently launched in Ireland’s capital city.

Rebounded economy

As of October 2018, Ireland had an unemployment rate of 5.3% – the country’s lowest since 2008 and below the EU and Eurozone average. Its GDP is expected to grow 4.4% by the end of this year, and has enjoyed consistent and sustainable economic growth since 2012, indicating that the global economic crisis might be a thing of the past for Ireland.

Europe’s technology capital

Global tech giants Google, Facebook, LinkedIn, Twitter and Microsoft all have their European headquarters in Dublin. Many more are either moving tranches of their staff or looking at the city as an alternative European headquarters. From a hard-nosed business perspective, Ireland has one of the lowest ‘onshore’ statutory corporate tax rates in the world at just 12.5% and this has certainly proven to be a strong pull-factor for firms.

“With the country continuing to attract foreign investors, Dublin is set to see continuing growth and remain Europe’s technology capital,” says Radford.

Ireland’s property market is booming

Ireland’s property prices rose by 8.6% in 2016, and 11.9% in 2017, according to rating agency Standard & Poor’s. The 2016 census for Ireland showed that the national housing stock increased by a mere 8,800 units between 2011 and 2016 while the population grew by 173,613 people over the same period.

Rental yields are impressive

Property in Ireland is yielding great returns. In September 2018, it was reported that for the 25th consecutive quarter rental income had risen across the country, with Dublin rents up an impressive 10.9% year-on-year. By comparison, in the same period, rental yields in the UK fell from 4.9 to 4%.

“There is currently also an all-time-low in levels of availability of rental stock and property registrations currently are at their lowest level since records began in 1970, which mean that a rental apartment will not stand empty,” Radford explains

Ireland has fantastic lifestyle opportunities for investors

Mercer’s 2018 Quality of Living report named Dublin the top city in UK and Ireland for the second consecutive year and put the Irish capital above Paris, New York and Tokyo. With a stable political environment, low levels of air pollution and a strong socio-cultural environment, Dublin’s ranking as a top city to live in comes as little surprise.

Also, with an excellent road network, you can get away from Dublin for the weekend and appreciate breath-taking scenery.

“Bearing all this in mind, now is an excellent time to invest in Dublin,” says Radford. “The residential market offers investors the opportunity to gain exposure to Europe’s fastest growing economy, with property prices still significantly below their previous peak. Due to the forces of chronic undersupply and growing demand it can be expected that both capital and rental growth will continue on an upward trajectory for the foreseeable future.”

 



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