Dublin’s status as one of the best cities in the world has continued to grow over the last decade, with many major international technology and financial companies choosing to call it home. Outside of the business world, Dublin also holds a lot of appeal to those looking to make a real estate investment, but what exactly does this city have that others don’t?
Advantages of Investing in Dublin’s Property Market
One of the most significant advantages of investing in Dublin’s property market lies within its economic growth and stability. The city has seen consistent GDP growth over a long period of time, and this upward trend shows no signs of slowing down. A significant factor in this is Dublin becoming one of the major tech and finance hubs in Europe. This has resulted in employment rates staying consistently high, something that directly correlates with a strong real estate market.
Dublin also offers several government incentives designed specifically for property investors, including tax breaks and grants aimed at promoting private investments in local property markets. These kinds of policies are great for boosting investor confidence, and they are not commonly found across other major European cities.
Similarly, the government has made the process of acquiring a property transparent and easy to follow. Investor-friendly legal provisions keep investments safe, which is yet another factor that helps investor confidence. When you combine all of these things, it’s easy to understand Dublin’s appeal and why real estate investors are bullish about the city’s future.
Challenges and Risks in Property Investment
As with any investment, property investing in any city comes with its fair share of challenges and risks. In terms of market risk in Dublin, the dominance of the tech industry means that global changes to the sector could affect the city’s real estate market. This is something that has happened in the past where economic downturns in the US resulted in a decline in property values in Dublin.
Even at the individual sales level, there are risks to contend with. For example, what happens when you’re planning to cash out and a house sale has fallen through? This is more common than you might think, and in places like the UK, it happens 25-30% of the time. The buyer might be having mortgage problems, there could be issues with the house survey or even delays in conveyancing that could lead to a buyer pulling out of a sale. Whatever the case, you need to have a plan for what to do.
A third type of risk is changes in a city’s regulatory environment. We spoke earlier of the favourable regulatory situation in Dublin, but what if the political winds changed? Investors must always pay close attention to the way things are moving so they can try and pre-empt any changes that might affect their investments.
When you weigh up the positives and potential negatives, it’s easy to see why Dublin is an appealing place to invest in property. It’s economically and politically stable and there is already a huge amount of investment taking place. Things can always change, and there are always risks, but there’s no reason to doubt the path that Dublin is on.
