2023-03-08-莱坊-Residential_Investment_Market_Q3_2022_5页_9mb

Summary of Ireland Residential Investment Market - Special Focus on Dublin Student Accommodation

Economic Context: The Irish economy remains resilient, with a low unemployment rate of 4.3% and expected further declines. GDP growth is projected at nearly 9% for 2022, supported by strong domestic demand and fiscal policies, despite global uncertainties slowing deal activity.

Residential Investment Market Trends:

• Q3 2022 saw high transaction volumes, with €1.7 billion invested across sub-sectors.
• Multifamily and Purpose Built Student Accommodation (PBSA) dominated, accounting for 83% and 6% of residential investment respectively.
• Forward commit and existing deals were prevalent, while inflation and geopolitical factors may temper activity in the remainder of 2022.

PBSA Market Analysis (Dublin Focus):

• PBSA is a key asset class, with Dublin undersupplied and high demand from domestic and international students.
• Notable transactions included Project Ruby (€145M, 2022) and others, adding bed spaces to the market.
• Institutional investors like Blackstone and Greystar lead acquisitions, reflecting market confidence.
• Forward funding deals are likely to increase due to supply constraints, and the sector is maturing compared to private rented sector (PRS).

Overall Outlook:

• Supply needs acceleration to meet demand, with economics and inflation impacting sentiment.
• Other sub-sectors like office and industrial markets in Dublin show similar growth drivers but the PBSA focus remains central.