Investing in Europe’s fastest growing economy of Ireland
As Europe’s fastest growing economy, Ireland is becoming popular among international investors in recent years. Wellknown international property consultancy Knight Frank released Dublin Residential Market Analysis for International Investors 2018 at its property show which was held in Shanghai on Thursday. Before the event, the Global Times (GT) sat with James Meagher
(Meagher), Partner, Knight Frank Ireland, and Ray PalmerSmith (Palmer-Smith), director of New Homes, Knight Frank Ireland, who share their insight and vision on property and investment in Dublin, Ireland. GT: What’s your perspective on the future of the real estate
market in Ireland and how does the residential market in Dublin appeal to investors?
Meagher: Ireland went through a very large recession 10 years ago during the financial crisis and property collapsed in value. There was little development in that period, so there’s a deficit of housing stock in the Irish economy. But more particularly in the Dublin region, over 50 percent of the population of Ireland now lives in the Greater Dublin region, which sprawls about 30 kilometers around the city center. With the Ireland population boom of growth by 20,000 people per annum, Dublin will underpin a long-term demand for housing.
Palmer-Smith: The year 2017 saw the highest rate of price growth in Dublin since 2015 with apartment prices growing by 10.8 percent. Dublin rents in Q1 hit their highest level since records were set in 2007 and have now increased by 55 percent since their low point in Q1 of 2011, which means private landlords are continuing to see rental yields of around six to seven percent for both apartments and houses.
GT: In addition to economic opportunities, what else, in terms of work opportunities and education quality, can Dublin offer to individual investors?
Meagher: With a huge employment growth in Ireland supported by economic growth, the country now needs to import employees. Major tech companies such as Microsoft, Facebook and Google have set up their European headquarters in Dublin which appears to be the Silicon Valley for Europe. They are also hiring college-educated non-Irish people. A lot of our Chinese clients are choosing to migrate to Ireland and are going through the investor visa program to work in tech.
Palmer-Smith: In terms of the attraction from a lot of Chinese clients whom we have already been working with in the process of moving or who have already moved, there is also a big appeal with education. Because we have a lot of very good schools concentrated in the Greater Dublin area, both for younger children and for higher education.
GT: Are there any policies that will benefit overseas investors?
Palmer-Smith: There is currently no language requirement with the immigration program. Ireland often gets on global surveys for how welcoming and how adaptable its population is. Our workforce often ranks first globally. As a result of that, we have a very diverse workforce in terms of nationalities. So both the immigration program and the population in general are very welcoming of international immigrants.
The Greater Dublin Area in Ireland