Dublin’s city centre is a magnet for people looking to escape the city’s gentrification trend.
Dublin has seen a “massive” influx of people from overseas who are renting apartments and homes, with rents rising more than 40% in the past year.
However, many of those renters are choosing to stay put, with the number of properties being snapped up by foreign investors increasing from about 1,300 in December to 2,200 today.
Dublish property tycoon John F. Kelly, owner of Irish property company, Kelly & Partners, said the surge in foreign investment has been the biggest since the financial crisis.
He said: “I think it is probably one of the most successful periods of change in Dublin since the bubble burst.”
Mr Kelly said the influx of foreign investment was a direct result of the Government’s decision to relax restrictions on foreign investment in housing.
Dubland’s rental vacancy rate rose from 4.6% in December 2015 to 5.2% in April this year, the highest in the country.
It is currently at 3.8%, according to the latest figures from the Rental Unit Association of Ireland (RUIA), which is based in the City of Dublin.
Mr Kelly, who has close links to Dublin’s political and business establishment, said foreign investors had bought property at a rapid pace in recent years.
He told The Irish Sun: “They’ve just bought properties and they’re just not moving into it.”
Kelly said Dublin had seen a massive influx of foreigners into the city in recent months, especially after the Brexit vote and Brexit-related protests in the city.
He added: “It’s a very positive sign, because it means the whole country is watching Dublin, and I think they are also watching London.”
Mr J.B. Murphy, chief executive of the Dublin Chamber of Commerce, said rents were rising faster than in any other city in Europe.
“We have had some huge rent increases, we have had more foreign buyers, and more and more foreign workers have come into the country,” he said.
“What we’re seeing is a new phenomenon.”
Mr Murphy said the rise in foreign buyers was linked to the “new Dublin”, the new city, which has been built on the ruins of the former Irish Army barracks and is being redeveloped into a mixed-use neighbourhood.
Mr Murphy added that the new Dublin has been hit by a number of issues, including the economic downturn.
“The housing crisis is still happening, but we are seeing an increased amount of foreign buyers come into Dublin, especially from the Middle East, China and from Russia and China,” he told The Sun.
Dubbed “Dublin the City”, Mr Murphy added: “(Foreign) investment is an asset for Dublin, it is a positive development for Dublin.”
In terms of the housing crisis, there is a huge amount of capital that is going into the Dublin area, and that is being redirected to the capital, to the east, to Cork and Dublin.
“Mr Walsh, who is the CEO of Dublin-based property developer and developer-investor, Kelly Ventures, said he believed foreign investors were not the only ones buying properties.”
Foreign investors have also been buying properties in Dublin,” he added.”
That is very good news, and we see that in the market.
“He said the city had also seen a surge in new homes being built, particularly in Dublin’s inner suburbs.”
If we look at Dublin’s housing situation, we’re at a really interesting place.
We’re getting more houses, more homes being constructed,” he explained.”
Dublin is a city of growth, but it is still in a bubble.
“Dublin City Council has released a statement in which it outlined its plans for Dublin’s future.
The council said it is now working to make Dublin the most sustainable city for everyone, and it is also committed to creating new jobs, improving the environment, and providing more opportunities for people of all backgrounds.
It said it was “committed to the development of new ways to bring together people of different cultures and backgrounds, and engage with the wider world”.
Dublin Council said the Council was working to bring people together in a new way, including by working with local businesses and organisations.”
This means new ways of living, including more green space, improved access to transport and socialising with others, and better services for residents,” the statement said.
It also said the council was introducing a new initiative, Dublin Live, which would be a new social media platform for residents, businesses and local organisations.
It was also working to ensure that Dublin residents have access to an affordable and high-quality public transport network.