A Magnet for International Firms
For sure, Dublin enjoys a stable political environment, a robust socio-cultural environment and above all, tremendous craic. Plus, there’s no denying that it’s a beautiful city – Dublin’s “fair city” lies in a prime position on a bay, at the mouth of the River Liffey, with the Wicklow Mountains as its backdrop. But there’s one problem - you need deep pockets to afford the high cost of living and the pricey accommodation.
Dublin’s fair city comes at a price
What is the best way for a citizen of Dublin to lower their cost of living? Move to virtually any other city in the European Union (EU). The Irish capital was named as the fourth most expensive city in the euro zone for expatriate workers to live, according to a Mercer survey in 2021. And Dublin moved to joint 19th position as the most expensive city globally, according to the Economist Intelligence Unit’s (EIU) Worldwide Cost of Living index 2021. Feeling the pinch, some of the city’s residents have already packed up and moved elsewhere.
The Irish government is splashing out €505 billion in a bid to soften the blow of soaring living costs for the average household nationwide. But why is Dublin so expensive? As the economic epicentre of Ireland, Dublin led the country’s expansion during an economic boom fuelled by foreign direct investment - the glory days of the so-called “Celtic Tiger” roared through the mid-1990s to the late-2000s. Sadly, the subsequent property bubble resulted in a severe economic downturn. The 2008 global financial crisis hit hard, and Dublin rents soared out of reach for many inhabitants.
High demand coupled with supply shortages, worsened by tighter lending conditions, makes it difficult to find a place to rent to Dublin, never mind afford one. The number of rental homes available has hit an “all-time low” according to a report by property website Daft.ie , with just 712 ads for rental homes available at the start of February 2022, fewer than a quarter of the average over the last two decades,
Meanwhile, prices remain “stubbornly high”, the report states. The average cost for a new home in Dublin soared 3.4% to €405,259 in 2021. In Dublin, rental inflation of 4.1% in the fourth quarter of 2021 was the highest since 2014. The cost to rent a single bedroom flat in the Dublin city centre rose 7.1% to €683 in the fourth quarter, while rent for a double bedroom apartment was up 4.4% to €828.
In short, Dublin is a beautiful, cultural city, where international companies are increasingly setting up home, with quality banter and constant humour frequently found among its warm and friendly locals. Moreover, Dublin offers top educational institutions and nature is on your doorstep. It’s a highly liveable city, but like everything good in life, it comes at a high price.
Institutional investors have flooded into Ireland over the past decade, taking advantage of strong rental yields. Demand for real estate remains strong, although supply is tight and prices are high. The city offers a pro-business economy and is increasingly enticing international students and companies as a result of Brexit. Finally, let’s not forget the great craic.
David Egan, Country Manager and Director of Asset Management Ireland
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Dublin’s Market Fundamentals Ranking
Dublin is home to 1.43 million of some of the friendliest people in the world, accounting for 28.5% of the country’s total population.
By 2036, Dublin’s population is expected to grow to 1.8 million. The city is growing as it welcomes people from countries such as Lithuania and Poland. And 90% of immigrants see Dublin as a good place to live, according to a 2020 European Commission survey on quality of life in cities.
Interesting City Facts
