There has been consistent growth in the Dublin metro region and the rest of Ireland’s real estate market during the past decade. The robust economy and high employment rates are the primary drivers of this expansion. In 2022, GDP increased by 5.6%, the second highest in Europe, and full-time employment grew by 2.7%. According to the head economist at Goodbody Stockbrokers, Ireland is the only developed nation to see GDP growth this last 12 months, thanks to the success of its pharmaceutical and technological exports.
International companies have been flocking to Dublin, especially those involved in the IT industry; Facebook, Google, and Twitter all have European headquarters in the city. Ireland also has a booming medical technology industry, with many of the industry’s heavyweights having their headquarters in Dublin.
Dublin’s population is expected to expand by nearly a third, to 1.76 million, by the year 2036, contributing to the strong demand for housing in the city’s finest sites. According to the 2019 PwC/ULI Emerging Trends in Real Estate Europe study, Dublin is the third-best European city for real estate investment and development.
Therefore, there is a lot that might interest foreign buyers in the real estate market. Many Hong Kongers have decided to invest in property in the United Kingdom due to its identical purchase procedures and high value and potential returns.
When compared to other European capitals, Dublin’s prices are quite low. According to Mei Wong, Executive Director – Head of International Residential Sales at Knight Frank, which specialises in residential and commercial property consultancy, one-bedroom apartments in prime residential areas, such as South Dublin, start at €400-500,000, while family homes start at €1 million, though in super-prime areas can exceed €10 million.
South Dublin, namely Dublin 4 (which includes Ballsbridge, Sandymount, and Donnybrook) and Dublin 6 (which includes Ranelagh, Rathmines, and Rathgar), are the most attractive places to reside in, especially for a family house. Each provides a variety of accommodation options close to the city centre and is situated near some of the best schools in the city, including those that made The Sunday Times’ ranking of the top 25 schools in Ireland in 2022. South Dublin’s Blackrock, Monkstown, Dalkey, and Killiney are also gaining popularity because of their proximity to the water.
Titles for both single-family homes and multi-unit buildings are structured similarly to those in the United Kingdom. Flats, especially brand new ones, are more likely to be leasehold (typically 999 years), whereas houses and townhomes are more likely to be freehold. Rental yields in and around Dublin are high and have increased since 2011, albeit they vary by neighbourhood.
In Greater Dublin, where undersupply continues to fuel development and push up rental values, off-plan properties, which are popular with Hongkongers, may provide excellent returns of between 4 and 6 percent. Property in more established neighbourhoods of Dublin, such as Dublin 4 and Dublin 6, does not provide the same growth possibilities as apartments in Dublin 2, where a number of new constructions are debuting on the south quays.
Cork, Ireland’s second most popular location for property investment; Limerick, one of Europe’s Cities of the Future in by fDi Intelligence, a specialist division of The Financial Times Ltd.; and Galway, European Capital of Culture 2020, are all worth considering outside of Dublin. These cities are desirable locations to reside because of the high quality of life they provide, including access to outstanding educational and healthcare institutions and recreational opportunities like golfing, fishing, and sailing.
Ireland is a unique market for international property buyers for a variety of reasons. Ireland has kept its property tax rates at historically low levels. The stamp duty rate is 1% on the first €1,000,000 of a property’s worth and 2% on the remainder. Property taxes at the state and local levels are generally low.
Despite the fact that there is presently no cap on the number of residences that may be owned by a resident or non-resident, purchasers and investors can purchase property at any stage of the residency process since IIP investors will possess a Stamp 4 VISA, which is comparable to a permanent residence permit.
Cash purchases dominate the Hong Kong real estate market, while mortgages are available for LTVs up to 70% at roughly 2.9%. Bartra can provide its customers with appealing and suitable mortgages because of its cooperation with EBS, one of Ireland’s leading financial institutions. Investors in the IIP programme should keep in mind that a €1 million investment in Nursing Home projects is expected to yield roughly €200,000 at maturity. This money might then be used to purchase real estate.
It appears that the global pandemic had minimal effect on people’s desire to acquire new houses, as seen by the resiliency of property markets throughout the world. As a result of people finally having the opportunity to investigate potential new markets, the number of inquiries from overseas investors has increased. Moreover, due to its location in an English-speaking country within the EU with a good quality of life and a consistently expanding economy, Dublin is a promising location for investment.