What is Ireland's economic attractiveness to investors?

General information about Ireland

Ireland is a small country of about 5 million people. Despite its modest size, Ireland's economic system shows significant development and demonstrates high achievements. In international rankings it occupies some of the leading positions. For example, Ireland ranks fifth in the world in terms of gross domestic product per capita.

Economic growth

Over the past six years, the country has remained among the leaders in economic growth within the European Union. Ireland's GDP grew by 9.1% in 2017, 8.5% in 2018 and 5.5% in 2019.

Indicators of competitiveness

Ireland's economic success is quite clearly presented in the IMD World Competitiveness Yearbook 2019 report. This document notes that Ireland is among the 15 nations with the most innovative economies on the planet. The country also ranks high in terms of attracting foreign investment, both in quantity and quality. Within the list, Ireland ranks:

• 6th in terms of economic freedoms,
• 7th in competitiveness.

The country's ability to attract talented professionals and create favorable conditions for doing business are important aspects.

Tax preferences

Particular attention should be paid to characteristics related totax preferencesIn addition, there are a number of tax credits available from the Irish authorities, making the country extremely attractive to entrepreneurs. The corporate tax is only 12.5%, and there are also tax deductions for research and development. According to PwC's 2019 report, Ireland is a leader among European countries in terms of ease of tax treatment for business.

The impact of the COVID-19 pandemic

There is no doubt that the COVID-19 pandemic has had its impact on the Irish economy, but its effects have been moderate so far. According to the Central Statistics Office, the country's GDP contracted by 6.7% in the first half of 2020. But since the third quarter, when many restrictions were lifted, the economy has shown growth of 11.1%.

Despite the new measures introduced in November 2020, expectations from government organizations were quite positive - GDP growth was predicted to be in the range of 1-2%. KBC Ireland even suggested that the growth rate could reach 2.5%, at a time when other eurozone countries were predicting a decline to 8%.

Economic structure

Experts from IDA Ireland also claim that the impact of the pandemic's consequences on the Irish economy will be insignificant. This is due to the fact that 14 of the world's 15 leading manufacturers of medical technologies and all major pharmaceutical companies are headquartered in the country. Ireland is the 7th largest exporter of pharmaceutical products on the international stage.

International companies in Ireland

For a deeper understanding of the scale of the presence of large international corporations, it should be noted that the capital of Ireland, Dublin, is home to the head offices of many well-known multinational companies. Brexit has had a significant impact on the concentration of international business in Ireland, especially in the financial sector.

Thus, the Irish economic system demonstrates its flexibility and ability to adapt to the changing external economic environment, continuing to attract investment and maintain a high level of competitiveness in the international arena.

Introduction

In today's world, many large companies have chosen Dublin as their main office in Europe. These include giants such as Google, Facebook, Twitter and Amazon, as well as financial institutions such as Deutsche Bank, J.P. Morgan and Barclays. These organizations represent only a small fraction of the well-known brands that are actively developing their operations in Ireland.

Economic growth and investment

One of the reasons why the Irish market is attracting the attention of investors is the country's impressive economic growth. This growth creates a high demand for housing, which in turn opens up excellent opportunities for real estate investment. The increasing number of foreigners working in the country with good salaries is also contributing to this trend. Despite the Dublin housing market adapting to such innovations, the process of change is rather slow.

Construction activity

Construction in Ireland, particularly in residential real estate, has become much more active, as evidenced by data from the Central Statistics Office. However, it is rental housing that is showing the most growth, which makes residential real estate more than an attractive investment. There is a constant shortage of apartments in the capital, and this problem does not seem to be solved in the coming years.

Market imbalance

Over the last decade, the country has witnessed rapid development of office real estate, but the pace of construction of new residential projects has lagged behind significantly, creating an imbalance between supply and demand. The COVID-19 pandemic starting in 2020 has also had a noticeable impact on the real estate market.

• As a result of actions taken during this period, many construction projects were put on hold.
• Even in the third quarter, when work resumed, the volume of new facilities could not cover the losses.
• As a result, there was an overall decline of about 14% for the year.

Population growth

In addition, population growth is an important factor affecting Dublin. In 2019, 1.38 million people lived in the capital, an increase of 100,000 compared to five years ago. Nevertheless, the level of new housing construction remains slow, especially in the central parts of the city.

The need for new apartments

Trinity College Dublin economist Ronan Lyons observed in his 2019 study that around 500 new apartments had to be built every week to meet rising demand. In the current situation, achieving these numbers seems to be a challenge. For example, in the first quarter of 2020, which was less affected by the pandemic, only 1,658 new residential units were built.

Dynamics of housing prices

The Irish real estate market continues to attract attention due to its dynamic price growth. According to Ireland's Central Statistics Office, housing values increased by 56% between 2013 and 2019. The price performance in 2020 has surpassed the most optimistic forecasts, and it is now clear that Dublin housing values have remained flat.

Conclusion

Thus, despite the current problems and challenges associated with the housing shortage, the real estate market in Dublin is an attractive and promising area for investment.

New trends in the income property market in Dublin

There are new trends in the Dublin income property market, in which large international investors are actively participating. Their interest in this market began to manifest itself long before 2020, and it is absolutely justified.

For example, Deutsche Bank completed the acquisition of Westend Retail Park in Dublin for an impressive 148 million euros. Also, the American investment company Heitman invested 52 million euros in 214 residential units in Dublin.

The German investment fund Patrizia was not left behind, which allocated 52.5 million euros for the purchase of a building in the docks area. In turn, Union Investment, a German investment company, purchased a brand new office complex built in Dublin for 190 million euros. In addition, Swiss Life, a Swiss management company, also found attractive investment opportunities in the city, investing 27 million euros.

Economic situation and increase in rental prices

Economic growth in Dublin has caused rents to rise sharply. In 2019, the city was one of the leaders among European capitals in terms of rental prices, according to reports by Employment Conditions Abroad International (ECA). Given the significant housing shortage in this city, especially in central areas, improvements are unlikely to occur in the near future.

Data provided by the daft.ie platform shows that the average rental price in the country is €1,300 per month, while in Dublin the figures are well above this level. For example:

• Rent for a two-bedroom apartment in the suburbs ranges from 1700 to 2200 euros.
• In central areas, rents range from 1,800 to 2,600 euros.

The average cost of renting one-room apartments also confirms high utility bills (data from the Central Statistical Office).

Return on investment in real estate

Speaking of yields, it's worth mentioning that in Dublin they can range from6 to 10%depending on the type of property and its characteristics. Micro-investment residential buildings in the heart of the city, consisting of six to ten apartments, represent a particularly attractive option for both current income and long-term value growth prospects.

Options for real estate investment in Dublin

Consider the various options for real estate investment in Dublin. The first of these is residential apartments. Apartments located in modern residential complexes that were built in the early 2000s are particularly favorable for rent.

These apartments are often rented by middle class and foreigners. Prices for such properties range from250 to 350 thousand euros. When rented out, such apartments can generate income in the range of6-8%This is very high for the capital of a European country.

Usually apartments in the center are rented with quality repairs and furniture, so potential investors should take into account the possibility of additional investments to10,000 eurosfor interior renovation and possible repair works. Apartments of this type rarely remain vacant - tenants usually find accommodation within a few days.

Promising areas for investment

Which neighborhood to choose for investment? There are a few of the most attractive neighborhoods. First of all, you should pay attention to the IFSC (financial district), where companies such as Citibank and KPMG are located.

Choosing the right neighborhood for your Dublin property is key to a successful investment, taking into account the opportunity to grow rents and create a steady income. Understanding the local market and tenant preferences also plays an important role in achieving success in this area.

Offices and businesses in Dublin

The capital of Ireland, Dublin, is home to the offices of such global giants as JP Morgan, Grant Thornton and State Street, in addition to more than fifty major banks and numerous significant insurance companies. Spencer Dock, Clarion Quay, Spencer House and Custom House Square are the most popular office complexes among tenants.

Home prices in these neighborhoods start at approx.€250 thousandwhile apartment rentals start at an amount€1.6 thousandper month. The office space is concentrated in the financial cluster calledSilicon Docks.

Silicon Docks development

The area was the result of a massive port dock renovation project in the early 2000s and today resembles the famous Silicon Valley. It is home to the headquarters of such technology companies as:

• Google
• Facebook
• Twitter
• LinkedIn
• Airbnb

These companies form the main contingent of tenants in the area. Their preferences concern Longboat Quay, Hanover Quay, The Waterfront and The Waterside residential complexes, where apartment prices start from€300 thousandand the monthly rent rises to€1.7 thousand.

Legal quarters

Silicon Docks is home to Google's headquarters. Near this area are the following neighborhoodsSmithfieldandStoneybatterwhere legal offices are concentrated. Tenants in these locations are mostly employees of the state courts.

Popular developments such as Parkgate Place, Collins Square, Clifden Court and Smithfield Market offer accommodation with apartment prices from€220,000and monthly rent from€1,200which provides a yield of about7%.

Pre 63 income houses

Also in Dublin there is a unique segment of real estate - income houses of categoryPre 63. These buildings, often located in the heart of the city, were created in the first half of the nineteenth century and were originally intended for aristocrats. In the twentieth century, they were converted into compact apartments.

In 1963, laws came into force in Ireland regulating minimum floor areas for new dwellings, but this act did not affect the older housing stock. Thus, mini apartments of historic construction constitute a unique and sought-after offer on the rental market. In Ireland, there is a clear term for such properties.Pre 63.

Investment attractiveness

According to expert Sergey Kumekov, partner at Spire Capital, most of these buildings are concentrated in the central part of the city, and their rent is significantly cheaper than in modern residentials. For example, a shot of a small studio can cost as little as€1,000per month, while the rent for a similar apartment in a new complex will be twice as high.

That is why the interest in these apartments has increased noticeably. All of the above-mentioned encourages owners of income houses to earn profits in the range of9-10%. It is possible to achieve a better rate by improving living conditions and elevating the attractiveness to potential tenants.

Introduction

In a global context, the need for major renovations is overrated in most cases. Often it is enough to replace the plumbing, make minor cosmetic repairs, install a boiler or set up a Wi-Fi connection to improve the condition of the property.

Cozy coastal village

It is a cozy coastal village with a long coastline where you can find both sandy and pebble beaches. It is located near a large town with all important stores, supermarkets, banks, pharmacies and other necessary facilities.

Apartment in Alanya

You are given a unique opportunity to buy an apartment in Alanya at a price of76,000 €. This apartment offers55 square metersof usable space, including two bedrooms and one bathroom. With the purchase of this property you will have a chance to obtain a residence permit.

The process of purchasing an apartment can be carried out online, including the possibility of remote viewing and execution of the transaction. Payment is available both in rubles and in the form of a loan.

New residential project

Also in our offer is a new luxury residential project in the Payyallar area, which is attracting foreign investors.

Infrastructure facilities are being developed, which makes this area more and more attractive for living and recreation. Currently you have a great opportunity to buyreal estate at extremely low prices.

Villa in Alanya

In addition, we are pleased to offer a villa in Alanya for a1,250,000 €. This property has a total square footage of350 square metersand a plot of land with an area of500 square meters.

Inside the villa there are five spacious independent rooms, a kitchen connected to a cozy living room, four full bathrooms, as well as a large terrace and two balconies. Most of the rooms have stunning views of the Mediterranean Sea, which will make your vacation even more comfortable and relaxing.

House in Zelenica

There is also a house in Zelenica, Montenegro, for sale.340,000 €The total area of this house is227 square meters, and a piece of land –300 square meters.

On the first floor, there is an apartment with two bedrooms and a private yard, as well as a garage. The second and third floors are occupied by a duplex with a spacious living room and a kitchenette. On the first level, there is one bedroom and a utility room, while the second level has two bedrooms.

The plot is spacious enough to set up a barbecue area and other entertainment options.

Apartment in Kargicak

In addition, we offer an apartment in Alanya for225,000 €This two-level apartment has an area of140 square metersand is located in a compact and cozy complex in the Kargicak area.

The complex includes one five-story block, which is located on the site in1591 square metersand is located just a kilometer from the coast. In the penthouse, you will find:

• a living room with an open kitchen
• three bedrooms,
• three bathrooms,
• balconies and terraces.

You will receive a set of household appliances as a gift.

Apartments in Athens

We also have apartments in Athens, Greece, priced at340,000 €and an area of87 square metersThese apartments are located on the sixth floor and consist of:

• two bedrooms,
• living room,
• one bathroom,
• pantry.

The apartment offers a stunning view of the city from its windows. It is being sold with furniture, and the building has an elevator, which adds convenience to the property. The location of the apartment in the Neos Cosmos area makes it popular among locals and tourists, making it a great investment as it combines comfort and accessibility.

Villa in Spain

Currently, a magnificent villa is available on the market, located in the picturesque area of Dehesa de Campoamor on the Spanish coast. This luxurious property, priced at 1.9 million euros, covers an impressive area of 500 square meters.

It features seven comfortable bedrooms and six bathrooms, and its design fully complements the surrounding natural beauty. The villa's terrace offers a breathtaking view of the sea, and the sunsets observed here are mesmerizing in their beauty.

Staying in this area will allow you to enjoy not only the proximity to the beach but also a bowl of countryside tranquility on a spacious 800 square meter plot. It’s the perfect place for those looking to combine relaxation with active outdoor activities.

Apartment in Alanya, Turkey

If we move to Turkey, we should pay attention to an apartment in Alanya being offered for 265,000 euros. This spacious property, covering 145 square meters, is located in the Tosmur area and includes three bedrooms, as well as a full set of modern appliances.

The apartment is fully furnished and ready for immediate occupancy. There is also the possibility of obtaining...residence permitwhich is a significant advantage for foreign clients looking to immerse themselves in the local culture.

Residential complex in Bulgaria

Another interesting option is a residential complex in Bulgaria, where you can purchase a two-level apartment on Sunny Beach for 66,000 euros. The total area of this property is 91 square meters, and it is located close to the resort center with access to all necessary amenities, including shops and restaurants.

The sandy beach is just 400 meters away. Additionally, the complex offers:

• swimming pool
• Summer Garden
• full service support

Apartment in Antalya

In Antalya, known as one of Turkey's gems, a magnificent four-room apartment with an area of 190 square meters is offered for the price of 560,929 euros. This high standard of living meets all the requirements for obtaining citizenship and includes various amenities such as:

• security
• hammam
• fitness center
• underground parking
• cinema

All of this makes the apartment especially attractive to future owners.

Apartments in Izmir

Stylish apartments with a magnificent sea view are offered in Izmir, covering an area of 164 square meters and priced at 520,000 euros. These apartments are located in the Urla district, which is renowned for its high quality of life and clean beaches.

Living here, you can enjoy a peaceful atmosphere while being just a distance away from the hustle and bustle of the big city, with amenities always at hand.

Available apartments in Konak

For those looking for affordable housing in Turkey, it's worth considering apartments in the Konak area, which offer a beautiful view of the bay. These properties are located in the cultural center of Izmir and are priced at 318,000 euros for an area of 124 square meters, including three bedrooms.

Apartment in Montenegro

And finally, if you dream of a peaceful life in Montenegro, you will definitely love the apartment in the center of the city of Bar, priced at 125,000 euros. Located on the third floor of a seven-story building with an elevator and good amenities, this cozy 54-square-meter apartment will be an excellent choice for both living and investment.

Conclusion

Thus, in the modern real estate world, there are many attractive offers throughout the Mediterranean, from Spain to Montenegro, each with its unique advantages and opportunities for comfortable living.

Property Description

This building features air conditioning, modern appliances, and a new interior design. All rooms are furnished. Residents of the complex have parking available. The sea is just 700 meters away. The interior space includes a large living room, a separate kitchen, and two bedrooms.

Penthouse in Fethiye

A penthouse is for sale in Fethiye, Turkey, for142,000 €, with a total area of172 m², which consists of5 roomsAmong them are more than 4 bedrooms and 2 bathrooms. A visa for permanent residence is available upon closing the deal. There are also options for online viewings and remote purchasing, and payment can be made in rubles.

This complex features apartments with a swimming pool, located in the Karachulak area, which is very popular in Mugla. This place is famous for:

• with a wonderful climate;
• picturesque bays;
• more than 300 sunny days a year;
• fertile land that attracts many people.

Karachulakh

Karachulakh is a rapidly developing area in the north of Fethiye. It is located on hills surrounded by pine forests, making it ideal for those looking for housing in the area. With the growing interest in Fethiye, it is becoming an increasingly attractive place.

Real estate in other countries

In Dubai, UAE, the following are for sale:

• apartments with an area of40 square metersat the price248,096 €;
• a house in Burgas, Bulgaria, for sale€299,000, with a total area of224 m²with5 roomsThis house with3 bedroomslocated in the picturesque area of Lohana, not far from the Sarafovo district, and includes a spacious yard of360 m².

The building has3 floors...while there are no maintenance taxes, and the annual contributions do not exceed...0 eurosThe completion of construction work is scheduled for2026a deposit of5000 eurosand produce100% paymentupon completion of the transaction.

Cyprus

You can also find cozy apartments in Karşıyaka, Cyprus, with an area of78 m²for128,417 €This quiet and peaceful neighborhood is located just a20 kmfrom the historical center of Kyrenia, surrounded by lemon and olive groves, and offers ideal living conditions. Previously, foreigners were not so eager to purchase real estate here, but since the beginning of the new millennium, active construction has begun in the region.

Townhouse in Greece

In addition, among the properties for sale, there is a townhouse in Athens, Greece, with an area of102 m², at a cost of620,000 €This two-level house includes4 roomsand3 bathroomsOn the sixth floor, there are two bedrooms, a kitchen, and a living room. The seventh floor has one bedroom and a shower, and the house is equipped with solar panels for water heating, a fireplace, and air conditioning. The building has an elevator.

Expenses when buying property in Ireland

It's also worth paying attention to the additional costs associated with purchasing real estate in Ireland. For example, for a two-bedroom apartment priced at350,000 €:

• the state duty will amount to1%from the cost of the object and will amount to3,500 €;
• The registration fee for property ownership ranges from1%to2%what will make up5,200 €;
• independent property appraisal —1,500 €;
• The realtor's commission can vary from4%to6%what is equivalent to21,000 €;
• VAT in the amount of23%add about6,400 €.

As a result, the total costs for the purchase will amount to approximately388,000 €.

Estimated costs for property maintenance

The estimated expenses for maintaining rented real estate amount to about 30,000 euros per year. These costs include several components: property tax - 497 euros, lease agreement processing - 90 euros, insurance - 300 euros, operating expenses - 2,000 euros, management company services - 5,904 euros, and annual tax report - 1,845 euros. The total expenses amount to 10,636 euros per year, including VAT.

Real estate tax

Property tax is mandatory and its amount is determined annually based on the current market value of the apartment registered in the cadastral register. The tax amount varies depending on the price category of the real estate.

Rental registration

The registration of the lease is mandatory according to the law, and landlords must record all lease agreements with a special commission that deals with housing issues. The registration fee is 90 euros and must be paid within a month after signing the contract.

Insurance expenses

Insurance costs can vary depending on the type of property. In our analysis, we concluded that for a certain category of real estate, the insurance premium is approximately 300 euros per year. Typically, tenants take out separate insurance for their personal belongings, while property owners protect their interests against risks related to damage to the apartment itself. Damage to the structural elements of the building is usually covered by special insurance, which is included in the operating expenses.

Operating costs

Operating costs are the amounts that are paid to the management company. This company develops and agrees on a budget annually, which is approximately 2,000 euros, but can actually range from 2,000 to 4,000 euros depending on the level of services provided. These expenses may include:

• Repair and maintenance of common areas, including parking lots, sidewalks, and driveways.
• Cleaning of common areas, which includes window washing, carpet cleaning, and maintenance of drainage systems.
• Elevator maintenance.
• Payment for electricity in common areas.
• Landscaping services.
• Ensuring security, including the installation of reliable doors, locks, video surveillance, and access control.
• Maintenance of alarm systems and fire safety equipment, as well as monitoring of sanitary conditions.
• Waste disposal.
• Additional services such as building and liability insurance, as well as legal and auditing services for housing cooperatives.

Real estate management

Property management and interaction with tenants typically costs around 10% of the rental amount. These services are provided by a specialized company that has experience in this field.

Conclusion

In conclusion of my research, I want to emphasize that Ireland, despite its small size and population, demonstrates impressive successes on the economic stage. Every point I have discussed shows that it is not just a small country on the map of Europe, but a powerful player capable of attracting the attention of global businesses and investors.

Economic stability

Economic stabilityThe high growth rates, despite global challenges such as the COVID-19 pandemic, indicate that Ireland has managed to mitigate the negative impacts and even demonstrate growth during certain periods. Low corporate taxes, effective tax incentives, and the presence of innovative companies create a favorable environment for doing business and contribute to attracting international corporations. This, in turn, increases investments and strengthens the labor market, attracting highly skilled professionals from around the world.

Real estate market

When it comes to the real estate market, I see huge potential for both local and international investors. Although there is currently a shortage of affordable housing in Dublin, the economy continues to grow, anddemand for housingIt will only continue to grow. The market needs new residential projects, and this creates opportunities for those who want to invest in this sector.

Key achievements of Ireland:

• High GDP growth rates.
• Low corporate taxes that help attract investors.
• The presence of major international companies in the market.
• Good conditions for doing business.

Prospects for development

Thus, Ireland represents a reliable platform for business and life success, and I hope that in the future we will see even more impressive achievements from this country.Attracting investments, fostering entrepreneurship, and improving quality of lifewill remain the main priorities for Ireland, making it attractive to anyone considering opportunities for growth and development.