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Dublin seen as hot property in Europe's real estate market

A report puts the capital as the second biggest property investment market in Europe for 2014.

Image: Sasko Lazarov via Photocall Ireland

DUBLIN IS ONE of the most in-demand property markets in Europe. That is according to a report by Urban Land Institute and PricewaterhouseCoopers.

The research shows that Dublin has jumped from 20th in last year’s report to second on the list this year in terms of investment ranking.

The study – entitled ‘Emerging Trends in Real Estate in Europe’ – also outlines how investors are becoming “increasingly comfortable” with taking more risk in search of returns. Its authors found:

Dublin’s real estate market has been transformed from a ‘no-go’ location among investors only two years ago, to being one of the hottest markets in Europe, with both domestic and international investors attracted by pricing levels and Ireland’s improving economic outlook.

The report also shows “51 per cent of respondents now see good buying opportunities in Ireland”.

Last year, one estate agency reported a 39 per cent increase in Irish properties being bought by UK buyers.

A survey of Real Estate Alliance reported that 20 per cent of their enquires now come from across the water and account for 13 per cent of sales.

Philip Farrell, CEO of Real Estate Alliance, says:

The average property price in Ireland is now €157,000 compared to €211,000 in the UK, so there is real value in the market, which is driving demand.
Timothy O’Rahilly, real estate partner with PwC in Ireland, added:
Investors believe that 2014 will mark Dublin’s comeback, driven by improving economic conditions, with unemployment at its lowest level since 2009, and forecast GDP growth of 2 per cent this year.

However, he warns that “opportunities for investment will be limited due to the size of the market”.

Over the past 12 to 18 months, there has been a significant increase in office prices in prime locations around the capital and local investors predict a further rise of 10 per cent this year.

O’Rahilly also commented that the residential market is in recovery with “prices for well-located properties rising over 20 per cent last year”.

He does, however, note that retail is still under pressure “with rents continuing to fall, albeit at a slower pace”.

The top five five European real estate investment markets in 2014 are predicted to be:

  1. Munich
  2. Dublin
  3. Hamburg
  4. Berlin
  5. London

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