The Ireland capital remains one of the best cities in the world to live in and now, it also ranks as one of the top three European cities for real estate investment and it has been for the last three years.
According to Irish Times, a new report released by PwC/Urban Land Institute survey indicates with real demands coming even from overseas entities, the sentimnet for Dublin is considered very strong.
The top stop for European investment market was bagged by Berlin, followed by followed by Hamburg, Dublin, Madrid and Copenhagen.
At the moment, Dublin is still pulling plenty of capital, however, the interviewees agree that the capital has already reached it peak of opportunistic returns. The good news is that those who have already made investments or will choose to invest at this pint will probably expect to see the highest returns and for good reason.
What is expected is that the offices in the capital have rental growth, however, the demand for increased office space may not be met for several years. Due to this, the lack of assests that would suit bargain hunters has paved the way for more appeals to core investors who, in return, would hav to take on more risk if they are to seek higher returns of investments.
The report adds that Dublin's retail recovery has just begun and the city has seen a lot of capital that is aiming to acquire retails assets.
PwC Ireland real estate partner, Enda Faughnan said the confidence remained very positive for Dublin investment coming from several investor types - "hedge funds, private equity players, pension funds, retail investors, wealth management, sovereign wealth and larger insurance companies."
He added, "Distressed bargains are no longer the attraction. We are seeing real demand from overseas companies setting up in the city centre with younger staff who want to live in or close to the city centre. That creates a lot of rental opportunities."
Tim O'Rahilly, another PwC Ireland real estate partner, said, "We re seeing significant institutional investor interest in buying end product and the expectation is that this will continue for the medium term. Development, however, is taking a while to get fully moving. Those seeking higher returns will now have to take on more risk.
"Opportunities can still be found in the development space, but this may involve buying debt rather than land, with investors being prepared to work with the existing landowners."
64 percent of the respondents of the survey also believe that this year, they expect an increase in business profitability.
