DUBLIN
Oliver Banks
Ray Palmer-Smith
Articles covered
As the capital of the Republic of Ireland, Dublin has always had something of an academic allure, with a renowned history in the literary and movie world. Celebrated native names include the likes of George Bernard Shaw, Oscar Wilde and James Joyce. A number of prominent Hollywood actors also hail from the city, including Brendan Gleeson, Gabriel Byrne and Colin Farrell.
The population of Ireland has grown by a third during the last 20 years - one of the fastest rates in the EU - and now stands at 5.0 million for the first time since 1851. The population is predicted to grow by 18.9% between now and 2040 - the second-highest rate in the EU.
The pharma and IT sectors have supported economic growth against the backdrop of Covid-19 as Ireland was the only economy to grow in the EU last year with GDP increasing by 5.9% and growth of 7.2% is projected for 2021 - the fastest rate in the EU (on the back of continued strong pharma and IT exports as well as a rebound in consumer activity due to the vaccine rollout and the lifting of restrictions).
The structure and profile of the Irish economy is quite unique: economic activity is driven by high value adding sectors and multi-national companies, who have invested heavily in property, production and people. One-third of the Irish population are under the age of 25, giving Ireland and Dublin one of the youngest, most dynamic populations in the world.
As a small open economy, English speaking, and with a highly educated workforce, Ireland has been very successful in attracting foreign direct investment. Dublin, as the capital city, is home to the European headquarters of multinationals such as Google, Facebook, LinkedIn, Twitter, Amazon and Microsoft.
Dublin’s buzzing atmosphere and multi-faceted culture are a big part of the draw. From the lively traditional pub scene to celebrating its traditional Gaelic roots and folklore, Dublin has something for everyone. What’s more, Dublin might not strike you as a beach city, but there are actually several beautiful strips of paradise within a short drive of the city centre such as Sandycove, Sandymount, Killiney Beach, and Portmarnock.
"Dublin’s buzzing atmosphere and multi-faceted culture are a big part of the draw."
What can you get for your money in Dublin?
Knight Frank has listed all properties within the past 12 months.
Neighbourhoods to watch
Dublin 8
The Liberties and surrounding areas are where traditional trades and industries such as brewing, distilling, tanning and weaving are located and have flourished, but in recent years it has become a place for modern businesses to locate. There are 2,300 homes expected to be delivered across the Player Wills, Bailey Gibson and St Teresa’s Gardens sites as well as 500 homes at the Guinness’s St James’s Gate Brewery. A swathe of new student accommodation schemes and hotels will see the population of the area grow both during tourist seasons and term times.
The Docklands
The Docklands crosses over the Liffey and spreads over districts 1, 2 and 4. A hub of redevelopment, the Docklands area is both modern and ancient; you’ll find history and heritage sat beside illuminations, glass fronts and mega-modern buildings. Grand Canal Dock is a Southside area near the city centre of Dublin, Ireland. The area has undergone significant redevelopment since 2000, as part of the Dublin Docklands area redevelopment project and has been nicknamed “Silicon Docks”. It has become a popular location for multinational technology firms such as Google, Facebook, Twitter, LinkedIn, and Airbnb.
What’s driving demand
Local education
9/6
9 Universities / 6 international Schools Education perks: Student discounts for retail outlets Reduced fares on public transport Implementation of a new National Skills Strategy and Action Plan for Education, which aims to make Irish education and training the best in Europe by 2026.
Reason for buying?
Profession
ICT
Financial Services
Students
Price per sq m:
Core: €5,382 Prime: €9,289 Super Prime: €10,764
Did you know
3rd
Dublin ranks as the third best city in FDI’s “Tech Cities of the Future” European rankings, coming in just behind London and Paris.
Who's moving there?
80% Returing expats
20% International
Reasons to buy
Dublin residential property prices increased by 8.1% in the year to July 2021 despite the pandemic with house and apartment prices rising by 9.2% and 3.7% respectively. Demand has remained robust as those working in ICT and Finance, who have been less impacted by the pandemic and have continued to buy. There has also been a dramatic increase in Irish expats looking to purchase property and return home as well as a surge in international investors and those relocating through the Irish Immigrant Investor Programme. In stark contrast, the supply of homes for sale is significantly constrained - just over 3,126 homes were listed for sale in Dublin on September 1st, down 26% from just over 4,200 on the same date a year ago.
Ireland has a low corporate tax rate of 12.5% and legislation heavily favours the establishment and operation of corporations. The economic environment is very hospitable for all corporations, especially those invested in research, development, and innovation meaning major tech and pharma companies have set up their European headquarters here, resulting in a steady demand for rental properties.
Dublin market in numbers
Whether it is for lifestyle or investment purposes, there can be extra costs that need to be considered in addition to the purchase of the property itself. While the cost of the property is by far the most significant expense, additional costs you may need to cover can include local fees, taxes, running costs and possible charges that will need to be factored in.
Purchasing costs
2%
The total percentage of purchasers costs involved in buying a property in Dublin, which includes:
Additional information
Taxes: Stamp Duty is 1% up to property price of €1m, 2% on any excess. Advisory fees: Buyers should allow 1% of the purchase price for legal fees. Local property tax, based on the valuation of the property, varies from €90 per year to €2,721 for properties valued between €200,000 and €1,750,000.
Definitions:
Rental yields: Based on gross income. Average rental: Based on prices per month. Prime market: The most desirable and most expensive property in a given location, defined as the top 5% of each market by value. Super prime market: The most desirable and most expensive property in a given location, defined as homes priced at more than US $10 million.
Investment breakdown
Core market
Rental yield: 5.5% Expected running costs: €2.7 sq m Average rental: €32 sq m
Prime market
Rental yield: 4.5% Expected running costs: €4.9 sq m Average rental: €32.5 sq m
Super prime market
Rental yield: 3.5% Expected running costs: €6.5 sq m Average rental: €36 sq m
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Sources: 1. Knight Frank, 2. Knight Frank Research. This city guide is provided for general information only. It is not definitive, nor is it intended to amount to advice on which you should solely rely upon. As far as applicable laws allow, we do not accept responsibility for errors, inaccuracies or omissions, nor for loss or damage that may result directly or indirectly from reliance on or use of its contents.