IDA minimizes rental crisis by claiming 1,000 euros a month to multinationals



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A view from the top of the O Connell Bridge. Stock photo
A view from the top of the O Connell Bridge. Stock photo
  • IDA minimizes rental crisis by claiming 1,000 euros a month to multinationals

    Independent.ie

    IDA has sought to minimize the state of the housing crisis with multinationals.

    https://www.independent.ie/business/personal-finance/ida-plays-down-rental-crisis-with-1000amont-appartment-claim-to-multinationals-37564782.html

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IDA has sought to minimize the state of the housing crisis with multinationals.

Its leaders were asked to tell potential investors that the housing shortage was "not unique in Ireland".

A series of background documents also advised IDA leaders to let businesses know that monthly rents in Dublin were still competitive by international standards.

She claimed that the rent for a small "apartment for one person" in Dublin rose to just over € 1,000 a month.

That accounted for almost half the price of rent in San Francisco and significantly less than in other big cities such as New York, Hong Kong and London.

The documents were developed after multinational companies had expressed concerns about "constraints" and "glaring market failures" in the residential real estate market.

IDA information sessions included rent data from the Nestpick furnished apartments index.

Information meetings for IDA also pointed out that rents at regional sites in Ireland were "very competitive".

While the standardized average rent in Dublin was € 1,436 per month, Cork and Galway was slightly above € 1,000. In Waterford, it was only 674 €.

However, according to the Residential Tenancies Council of the second quarter of 2018, the standardized average standard rent in Dublin amounted to € 1,587, an increase of € 128 from the average monthly rent of 12 month. At the national level, rents increased by 7.6 pc per year during this quarter.

Regarding real estate purchases, the average housing prices in Dublin, of just over € 400,000, were "competitive compared to major competing cities".

Average real estate prices were at least 50% higher in Paris, Zurich and Geneva, according to documents prepared by IDA.

Ireland does not compare so well to cities like Milan, Prague and Frankfurt.

"Regional cities compare exceptionally well with other competing cities," said the briefing, with average prices in Cork and Galway below € 200,000.

The meeting also indicated that there were "extremely positive trends" in the residential property market. He said the first buyers in Ireland were in a much better financial position than today.

"The novice worker couple who on average employs 21.2% of their net income to finance a mortgage in Ireland – this figure was 32% in 2007," said the briefing.

The presentations are based on a series of quarterly Housing Reports commissioned by the IDA to Lisney Realtors.

The reports were launched because of concerns of companies regarding the Irish real estate market.

"Our customers operate in an international context and it is up to IDA Ireland to determine how we compare ourselves to our competitors," said IDA.

Irish independent

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