Confidence in Dublin's property is back on high
DUBLIN is climbing up the European property ladder and confidence within the real-estate industry is at its highest since 2008
A NEW report by PwC and Urban Land Institute, 'Emerging Trends in Real Estate Europe', notes that there are "sentiments of improvement" in Dublin for both investment and development.
A survey of sentiment among more than 500 European investors, fund managers and property experts said that investors are warming to the city's property market.
Dublin has moved up in the rankings to 20th place in 2013 from 26th place out of the 27 cities in last year's survey.
The capital has moved up to 15th place from 22nd place last year for new investments and is up five places to 19th for development prospects, PwC said.
An improving economy is "encouraging" and the clarification of upward-only rent reviews has also helped to "calm the market," the report said.
The investment market remains thin in Dublin, though this could improve substantially over the coming months.
Interviewees predicted increased opportunities to invest in distressed properties, as Irish banks start to release properties to market and the appetite appears to be there, especially from the US opportunity funds, analysts said.
"We are certainly seeing increased interest from international investors and, together with renewed activity from local high net worth individuals, this will result in a stronger transaction flow this year," said Enda Faughnan, PwC Ireland real estate partner.
Dublin's strength as a capital is helping it to begin to recover, Mark FizGerald, of Sherry FitzGerald, said. He added: "Research data shows that there were approximately €3bn of residential and commercial transactions in Dublin in 2012."
Dublin is seeing 51pc of the transactions, and the rest of the country 49pc.
Interestingly, 80pc of the interviewees said that the Eurozone crisis has created an opportunity for their business, while 42pc predicted that business confidence will increase.