Key Points

• Demand for Build-to-Rent investment in Ireland has been gathering pace in the last 12 months, fuelled by unique economic & demographic fundamentals and a notable supply demand imbalance in the residential rental sector in cities such as Dublin,
Cork and Galway

• Over 90 residential investment transactions extending to more than €1 million have been completed in Ireland since 2012, with more than half of these occurring between 2014 and 2016 when deleveraging activity was at its peak

• Until 2016, residential investment transactions in Ireland were not true Build-to-Rent transactions, with no purpose-built rental stock available to trade

• A meaningful improvement in new residential supply is now starting to materialise, which in turn is providing forward funding and forward commit opportunities for investors in this specialist sector of the investment market

• Over €500 million of residential investment transactions were completed in 12 transactions during the first six months of 2018 alone - almost twice the annual average volume of residential investments traded in the Irish market since 2012

• The volume of institutional equity targeting the residential investment sector in Ireland now exceeds €5 billion with considerable interest from European, Canadian, UK and US investors

• 85% of Irish residential investment transactions extending to more than €1 million in value since 2012 have been in Dublin although there is now increasing appetite for good opportunities in other cities such as Cork and Galway

• Prime residential yields in Dublin currently stand at 4.0% having compressed by 70 basis points in the last 12-month period - a return that is attractive compared to other locations in Europe