Dublin is proving to be an ideal city for property investment. It has a growing population and a high-demand rental market that can provide good yields for investors. With several global companies, such as Facebook, Google, Bloomberg, and LinkedIn, stationing huge offices in Dublin that hire thousands of people, the need for housing in the capital increases. However, there are still hazards when purchasing an investment property, but a buyer’s agent can help you avoid them and maximise your return.
Dublin vs the Rest of Europe
The 2019 PwC/ULI Emerging Trends in Real Estate Europe report ranks Dublin 3rd for real estate investment and development out of 31 European cities. This is an improvement on the previous year’s seventh place. The report cites the expansion of numerous global tech companies’ offices in Dublin as one of leading factors in the city’s attractiveness to investors.
The substantial developments being made to the area at Dublin’s docks have created modern office, living, and retail spaces in a very accessible location. This is part of an inner city regeneration which covers 520 hectares. According to the Dublin Docklands Development Authority, this project has “attracted over €3.35 billion of public and private investment”, created 40,000 new jobs, and 11,000 new homes.
The Exo Building is part of this project. It is being constructed next to the 3Arena and will provide a workspace for in excess of 1,950 people. The Capital Dock campus, completed at the end of 2018, is a mixed-use development. The jobs search engine Indeed employs over 1,000 people in their office here.
These state-of-the-art buildings are in a prime location, with access to bus routes, the LUAS red line, and the Port Tunnel that links the docks directly to the M1. They are now home to many global companies, providing excellent job opportunities that draw people from all around Ireland and internationally.
Dublin’s Rental Market
Naturally, the increase in population puts more demand on the housing market. IP Global’s report sees this demand as a positive attribute when considering investment properties in “Europe’s fastest growing economy”. “Due to the forces of chronic undersupply and continued growing demand it can be expected that both capital and rental growth will continue on an upward trajectory for the foreseeable future and as a result will remain on IP Global’s list of top investment locations.”
Rental prices in the capital have been consistently increasing over the last number of years. The Irish Times reported that the average monthly rent is up 8.3% in the last year to €1,366. In another report published last year, rental prices were setting “all-time high[s] for the last nine consecutive quarters”.
Rental yields vary in each area of Dublin. Daft.ie’s rental report for the first quarter of 2019 shows which areas currently prove best. For example, in Dublin 10, the yield for a 1-bedroom apartment is 12.2%, or 10% for a 2-bedroom house. In Dublin 17, a one-bedroom apartment will yield 12.8%, and a two-bed house 10.4%.
Investing with the Help of a Buyer’s Agent
When finding the perfect property investment, a buyer’s agent can simplify the whole process. Dublin has already proven to be a great location to invest in, but it can be confusing to know precisely which areas will provide the best yield over a number of years.
A buyer’s agent will be astute to potential changes in the market, both in purchasing and rental. This affords the investor with more knowledge of trends in specific areas, and grants them the ability to make more informed decisions to get the best possible return from their investment. They also know when prices are too high, and can steer you clear of these pit falls.
Buyer’s agents can guide you through the entire process, from sourcing your ideal investment property, negotiating the purchase at the best price, managing any potential renovations (if necessary), to staging the property for viewings, advertising, and even managing rentals.
If you are interested in making an investment in property in Dublin, why not book a free consultation with us through our contact page?