Investing in real estate is an excellent idea. It can be a great way to provide income, tax benefits, etc. However, only the brave ones dare to expand their business to other countries. When looking for an overseas country to invest in, industry growth, population expansion, and housing demand are the three main factors to consider. As a popular European destination, Dublin continues to attract entrepreneurs and real estate investors. If you’re unfamiliar with what this city offers, here is what foreign buyers look for in Dublin.
One of the main reasons Dublin is popular amongst foreign investors is its low-risk investment and strong market fundamentals. The city offers fantastic educational opportunities, easy access to industry hubs, strong rental yields, and many lifestyle benefits. According to the new Central Statistics Office residential property price index, private equity companies have been very interested in buying in the past few years. In addition, they are responsible for 25% of investments in the Irish housing market.
Throughout the years, Dublin has been the center of Irish happenings. With a flat rate corporation tax of 12.5%, many world-renewed companies such as HP, Twitter, Google, Microsoft, Lufthansa moved here, making new employment opportunities. All these foreign investments attract young professionals and entrepreneurs to settle in the city.
Dublin is one of the smaller European capitals. However, that makes it beneficial when it comes to short commutes and easy access to places. To walk across the city center, you will need less than thirty minutes. Also, since the whole of Ireland is not that big, affording weekend getaway trips is something you can count on. It offers a unique cultural experience enriched with world-famous stouts, whiskey, pubs, fantastic cuisine, and live music.
Buying a property in seaside neighborhoods is a common choice for holiday home buyers and retirees looking for a slower-paced lifestyle. If you’re tired of high-rise buildings and in search of a green city with easily reachable outdoors and coastal walks, moving to Dublin could be just the thing you need. However, moving abroad requires serious preparation. Make sure to be ready for the process by sorting out the paperwork and planning in advance.
Since the city has a high renting demand, investors might consider buying a property with cash or a mortgage. Considering that in Dublin, you pay over €1,600 on a mortgage for a three-bedroom apartment and a rent of €2,230 for the same property, buying is definitely more attractive than renting. To buy a square meter in the City center, you will need to pay over €5,000, but nearby areas cost 25% less. Naturally, property prices vary in different parts of the city – South Dublin City has the most competitive housing market. The median home cost is over €600,000. However, North Dublin City offers much more affordable homes for an average price of €350,000.
One-bedroom apartments are the most common buy-to-let choices foreign buyers look for in Dublin. Here, as in many markets, it seems that large properties have a lower yield. However, many areas have rent control, where the landlord can raise the costs only by 4% annually.
Dublin consists out of 24 postal districts marked by numbers. Even numbers are reserved for the city’s southern parts, while neighborhoods north of the Liffey River have odd ones. Nowadays, South Dublin offers different middle and upper-class luxurious areas. However, the North was always more popular amongst the working class.
If you’re looking for more luxurious homes to invest in, start your market search with Dublin 2. However, if you plan to relocate to Dublin with your family, neighborhoods in Dublin 4, such as Donnybrook, Sandymount, and Ballsbridge, are better options. The district is also full of great restaurants, with an excellent connection to downtown Dublin. For a median home cost of €500,000, you could have a large property with a garden, parking space, privacy, and proximity to the city center.
Dublin 1 and 7 have the most affordable home options. Unlike Dublin 1 that has old homes in a good location, Dublin 7 offers new, budget-friendly construction for homebuyers in Stoneybatter, Broadstone, Phibsborough, and Gangerorman neighborhoods. The only downside of these suburbs is their very noisy traffic and surroundings.
For those who enjoy cosmopolitan neighborhoods with many restaurants, pubs, and clubs, Portobelo in Dublin 8 is an excellent choice. This place is a great option for those who want to minimize their commute. Other than Portobelo, areas like Rathmines, Ranelagh, and Rathgar provide the same amenities. If you are looking for peaceful residential properties with green spaces, these are the neighborhoods to check out.
Secure investments are the main thing foreign buyers look for in Dublin when buying a second home, rental, or commercial property. The market might be small, but it has excellent fundamentals, population growth, and economic development. The housing demand is high, so the costs of homes are rising. Additionally, the influx of international company headquarters to the city opens new business opportunities. That factor attracts many professionals, turning Dublin into a powerful hub. If you’re thinking about relocating here, spending vacations on the Irish Sea, or simply investing in rental real estate, buying a property in Dublin is a smart call.