In­vest­ing in Eu­rope’s fastest grow­ing econ­omy of Ire­land

Global Times – Metro Beijing - - ENTERPRISE - By Du Qiong­fang

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.

Photo: Cour­tesy of Knight Frank

The Greater Dublin Area in Ire­land

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