In the last three years, Dublin has been considered to be in the top three cities in Europe ideal for real estate investments.
According to Irish Times, a new report by PwC/Urban Land Institute reflects that Dublin has very positive appeal among overseas investors. As of present times, Berlin is considered the top European investment market and trailing behind is Hamburg, Dublin, Madrid and Copenhagen. Though Dublin is also as attractive as these markets, the report shows that the experts think the Dublin has already reached its maximum returns, meaning that, those who already have investments in the Irish capital are like to see the highest total yields.
Also, according to Irish Times, the Irish capital market is looking up. The Dublin offices are expected to see growth in prices of rent as demand for office spaces will be hard to keep up with in the next several years. Accorind to Enda Faughnan, PwC Ireland real estate partner, said that Dublin investments still has positive sentiment among investtors. Faughnan add, "Distressed bargains are no longer the attraction. We are seeing real demand from overseas companies setting up in the city center with younger staff who want to live in or close to the city center. That creates a lot of rental opportunities."
On the other hand, PwC Ireland real estate partner Tim O'Rahilly 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.
The new report has also state that 64 percent of survey respondents believe that their business profitability would surge in 2016 while 66 percent believe that real estate debt will be more available.
