Dublin ranks seventh in Europe in real estate emerging trends survey
A survey by PwC/ULI placed the Irish capital city at the seventh position in real estate growth
Dublin has ranked at the seventh position in real estate investment, says a PwC/ULI Emerging Trends in Real Estate Europe report which included 31 European cities and included the opinions of 800 real estate professionals in Europe, including investors, developers, lenders, agents, and consultants.
Dublin ranked fourth on the list last year and third the previous year.
Among other cities covered in the survey, the top spot was occupied by Berlin for the fourth in a row, followed by Copenhagen and Frankfurt jointly at the second slot. Munich ranked fourth, Madrid in fifth and Hamburg in the sixth position.
The annual forecast is published jointly by the Urban Land Institute (ULI) and PwC.
According to PwC, Dublin is acquiring a new status as a “normalised, mature and safe market to invest in after years as an opportunistic investing story”. Also, the composition of buyers is also undergoing change, with buyers based in Europe investing more in the city compared with earlier times when US private equity capital was dominant. There is also more institutional money being invested in the city by European investors. At present, investors from the European countries of Germany, France, Switzerland and the UK are investing in the real estate sector in the city, said Joanne Joanne Kelly, PwC Ireland Real Estate leader. PwC said that there is going to be more demand for real estate and commercial property in the city in the years to come. It said that the demand for commercial property will include buyers across sectors such as banks and financial services.
Dublin has figured on the list of top cities in Europe in real estate investment because of a number of factors which include its skilled local English-speaking workforce. This makes it easier, cheaper and more beneficial for employers to do business in the city. Moreover, the emerging reputation of the city as a place that is likely to benefit from brexit, only adds to its potential as a favoured business and investment destination across Europe and the world.
However, the scenario is black and white as Ireland and its capital city of Dublin has some aspects to work upon. One of them is the city’s infrastructure which does not meet the required standards. It is viewed by respondents as lacking in some aspects. Those surveyed said the city’s infrastructure is not keeping pace with growth. The respondents said more investment in infrastructure is risky. Another factor which may go against Dublin as the business and investment destination is the effect of brexit in case the UK goes into recession as a result of brexit. This fallout is expected to be the most visible in on the flourishing tourism industry.
But, there is tremendous potential for housing in the city in the next three to five years which makes it attractive to investors. The private rented sector and student housing are the areas, in particular, where there is going to be huge opportunity over the next few years.