Article

The Opportunity Cost of Rent Control

September 18, 2024 10 Minute Read

Between 2018 and 2022, a total of €9.5 billion was invested into the Irish residential sector by institutional investors, over €5 billion of which was deployed into pre- or early-stage construction private rental sector apartments in Dublin and the Greater Dublin Area.
We estimate that this capital was supporting the supply of at least 2,000 new rental units per year.
However, since rent control measures were tightened in 2021 and the cost of capital increased in 2022 and 2023, institutional investment into residential stock in Ireland has stagnated.
Our conversations with investors indicate that both the capital and the desire still exist to invest in Irish apartment development.
With interest rates starting to decline, we believe that rent control measures now need to be reassessed.