Prospects for Dublin on the rise

WHILE THE European economic crisis has left real estate investment and development in limbo, the prospects for Dublin have improved slightly, according to a study by PricewaterhouseCoopers and the Urban Land Institute.

In 2011, Dublin was rated the lowest of 27 cities evaluated for both investment and development prospects.

This year there are signs of improvement with Dublin ranking second from the bottom on prospects for investments, fifth from the bottom for new investments and third from the bottom for development.

The general consensus, according to the report, was that Ireland’s economy had been through the worst. The export sector was performing well and the State had taken the necessary measures to support systemic financial institutions as well as starting to address public-sector reform.

One interviewee told the authors of the report: “We are working with people in Ireland just now. It has a nice little growth story going with low tax, low cost of labour; a lot of foreign direct investment and occupiers like Facebook and Google are out looking for new facilities. Ireland has come through a very difficult period but there are signs it is going to make it.”

Unfortunately, as the survey highlighted, the focus was now on the impact of global economic issues.

The uncertainties in the euro zone as well as in the UK and the US – the Republic’s largest trading partners – had presented a new set of challenges.

The report said Ireland’s fortunes may change during the course of the next year and the significance of improvements in outlook for property businesses should be balanced with the many uncertainties remaining, as well as the fact that Dublin was still one of the lowest ranked cities in the 2012 survey.

Enda Faughnan, PwC’s Dublin real estate partner, said the survey results indicated increased interest from international investors in Irish property, and “we are seeing that on the ground also”.