BLOG So who’s buying in Dublin’s Docklands…

Blog Post by Owen Reilly, August 12th 2015

In our Docklands office investors consistently make up between 80% and 90% of our buyers; the Docklands area is not cheap and first-time buyers can get more apartment / house for their money in other parts of the city. We notice however, that we are dealing increasingly with investors with a longer-term interest. These investors are motivated by the rental income potential offered by maturing Docklands neighbourhoods, and they are choosing the area for investment based on its thriving economy and potential for further development, and a belief that in good times and bad there will be strong demand for rental property.

Indicative of the maturing of the Docklands was an unusual increase in the early months of this year in the number of apartments bought as homes; while 55% of the 29 Docklands apartments we have sold this year so far (16 closed and 13 to close imminently) were bought by investors, 45% were bought as homes – these buyers were generally people with some connection to the area; they were either working or already renting in the Docklands.

Clarion Quay and Spencer Dock popular with investors

13 of the investors were Irish, two from the UK and one from Hong Kong; they bought two and three bedroom apartments. The highest price paid for a two bedroom apartment by an investor was €730,000 for a spectacular penthouse with a roof garden in the Clarion Quay development in the International Financial Services Centre (IFSC) area in the North Docklands area; the highest price paid by an investor for a three bedroom apartment was €530,000 for an apartment in the Spencer Dock development – also in the North Docklands.

First-time home owners focused on South Docklands areas

The home buyers were all first-time buyers who bought one, two and three bedroom apartments; nine of the 13 first-time buyers were single and the remaining four were couples with no children, six were Irish and the remainder from Continental Europe. First-time buyers bought apartments predominantly in the South Docklands areas – in the Grand Canal Dock, Irishtown, Pearse Street and Ringsend areas. The highest price paid by a first-time buyer for a one bedroom apartment was €270,000 for a top floor apartment with no parking in the Gallery Quay development – this was a very strong price but entry level for the Grand Canal Dock area; the buyer was employed locally and walked to work. One buyer, previously renting in the development, paid €560,000 for a two bedroom apartment in The Waterfront development at Hanover Quay, also at Grand Canal Dock – this was the highest price paid by a first-time buyer for a two bedroom Docklands apartment. The highest price paid by a first-time buyer for a three bedroom apartment in the Docklands was €570,000 for an apartment in Spencer Dock.

Owen Reilly, August 12th 2015