Dublin’s thriving economy outstrips residential supply

Corporate occupancy in Dublin may be soaring, but a lack of residential supply threatens its continued growth.

February 18, 2019Real Estate
At the first UK and Ireland GRI Club meeting of the year on 31st January 2019, members found plenty of reasons to be positive about the future of Dublin as a European gateway city, although it was agreed that greater residential supply is needed to support Dublin’s economic growth.

Moderated by Niamh O’Connor, executive director of real estate developer and investor Summix, the group began by sharing their assessments of the thriving corporate sector in Dublin and Cork. One occupier pointed to a diverse population and the growth of tech as key drivers behind this. The consensus was that the uptake in occupancy is overwhelmingly positive for Dublin’s economy and future status. 

Residential stress and PRS

However, residential developers quickly voiced concerns that soaring corporate occupancy places further stress on the residential market and the city’s lagging infrastructure. It was generally agreed that the lack of residential supply must be addressed in order to support Dublin’s growth; some participants subsequently suggested that developing PRS and co-living schemes would go some length towards catering for high residential demand. 

Senior living gap

To close the discussion, one US investor wondered whether retirement care was a feasible asset class to introduce in Dublin; members affirmed that historically, Irish healthcare supports citizens to stay at home rather than transition into senior living schemes. However, a number of participants were curious to see this asset class develop and suggested that there is a possible gap in the market for senior living in Dublin. 

Dublin’s growth potential

In summary, the club meeting provided astute macro-level insight into factors affecting Dublin’s potential development in the coming years. While it is clear that residential supply and infrastructure must be addressed, the consensus is that Dublin has enormous potential for growth and prosperity following Brexit and beyond. 

Dublin and Ireland’s real estate markets will be discussed further at British & Irish GRI 2019 on 15-16 May in London.