Mul­ryan: PRS must grow for hous­ing cri­sis to be re­solved

Irish Independent - Business Week - - APPOINTMENTS -

De­vel­oper says pri­vate rented sec­tor ‘ne­glected’ The man­ag­ing di­rec­tor of the Bal­ly­more Group, John Mul­ryan, has said the de­liv­ery of pri­vate rented sec­tor (PRS) ac­com­mo­da­tion in Dublin will need to grow sub­stan­tially to com­prise up to half of the new builds in the city cen­tre, if the needs of busi­ness and the wider econ­omy and so­ci­ety are to be met.

Com­ment­ing on the growth of Dublin’s PRS sec­tor in the course of a wide-rang­ing in­ter­view with the Ir­ish In­de­pen­dent, Mul­ryan de­scribed the ar­rival of pro­fes­sional in­sti­tu­tional in­vestors here as be­ing “re­ally im­por­tant” both in terms of ser­vic­ing the par­tic­u­lar ac­com­mo­da­tion re­quire­ments of the city’s fast-grow­ing tech sec­tor, and in help­ing to ad­dress the wider hous­ing cri­sis.

He said: “Build­ing high-qual­ity res­i­den­tial ac­com­mo­da­tion for peo­ple in Dublin is re­ally im­por­tant, par­tic­u­larly when you look at the econ­omy in terms of the growth of tech busi­nesses. You nat­u­rally end up with a more mo­bile work­force, peo­ple who are very happy to live in rental ac­com­mo­da­tion. There’s a huge lack of that [ac­com­mo­da­tion] in Dublin. Hav­ing more pro­fes­sional in­vestors come into that mar­ket has been a re­ally good thing in terms of try­ing to solve the hous­ing cri­sis.”

Asked for his re­sponse to con­cerns that in­di­vid­ual home buy­ers were in­creas­ingly be­ing crowded out, or forced to com­pete with large in­ter­na­tional in­vestors, the Bal­ly­more chief said that PRS would be just “part of the so­lu­tion” to Dublin and Ire­land’s hous­ing needs.

He said: “Home own­er­ship is re­ally im­por­tant. It’s re­ally im­por­tant that when you’re cre­at­ing these new places, that there is home own­er­ship. It gives peo­ple ‘buy in’. They be­lieve in the area and they stay there for a long time. It cre­ates com­mu­ni­ties. This [PRS] isn’t ‘anti home own­er­ship’. Home own­er­ship is the most im­por­tant part of the res­i­den­tial sec­tor. PRS is just a part of the sec­tor that has been ne­glected for years and needs to grow now.”

Bal­ly­more made its own en­trance to the PRS mar­ket in Dublin two weeks ago with the launch to the mar­ket of 268 apart­ments at Dublin Land­ings, the mil­lion square foot mixed-use de­vel­op­ment it is de­liv­er­ing in part­ner­ship with Ox­ley in the Dublin Dock­lands.

While the sell­ing agent, Sav­ills Ire­land, has not set a guide price for the port­fo­lio, its lo­ca­tion at the cen­tre of the cap­i­tal’s fi­nan­cial ser­vices and tech­nol­ogy sec­tors sug­gests it will com­mand a pre­mium.

In terms of its po­ten­tial pric­ing, one use­ful barom­e­ter was pro­vided ear­lier this year with Cairn Homes’s sale of 120 apart­ments at nearby Six Hanover Quay for €101m to a spe­cial pur­pose ve­hi­cle man­aged by Carys­fort Cap­i­tal. The sale price rep­re­sented an av­er­age gross price of €800,000 for each of the apart­ments.

Were those fig­ures to be repli­cated or sur­passed at Dublin Land­ings Res­i­den­tial, Bal­ly­more and Ox­ley could se­cure a sale price of at least €214m.

Bal­ly­more MD: John Mul­ryan says the ar­rival of in­sti­tu­tional in­vestors is wel­come

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