Dublin is the sixth most active real estate market in Europe for capital invested, according to a report by PwC and Urban Land Institute.
In its 18th year, the report ranks 31 European cities for investment and development potential as well as ranking sector prospects.
It is based on the opinions of 995 real estate professionals across Europe, including investors, developers, lenders, and advisors.
The report found that the prospects for real estate investment in Dublin remain favourable.
It is the sixth most active market for real estate in Europe in terms of capital invested – with €6 billion of capital inflows – after London, Paris, Berlin, Munich and Frankfurt.
Dublin also moved to eleventh position for overall real estate prospects, up from twelfth position last year out of the 31 European cities ranked.
Joanne Kelly, PwC Ireland Real Estate Leader, said that similar to European trends, the dynamics in Irish real estate have also shifted dramatically, amplified by the pandemic.
“Covid-19 has accelerated structural trends, seeing a change away from retail and office, towards the alternative sectors such as data centres, life sciences and health, energy and communications infrastructure.
“These areas, along with industrial property and logistics warehouses, will all benefit from growing demand in this new environment and a wall of capital we’re seeing ready to deploy.
Ms Kelly said that demand in Dublin for private rental residential and student housing remains strong.
However, she said there is concern about Dublin’s office market, where take-up is sharply down.
“Vacancy levels are likely to increase as new stock is completed, which could lead to downward pressure on rents,” she said.
Meanwhile, the report states that European real estate faces a ‘hugely challenging time’ but maintains long-term appeal due to low interest rates.
Article Source: Dublin sixth most active real estate market in Europe, according to report – RTE