Brexit banking exodus fuels real estate gold rush in Dublin

Demand for a recent Irish offering of mortgage-backed securities was three times greater than the amount of debt offered

National /
Apr.April 21, 2019 12:00 PM

(Credit: iStock)

Debt investors are eager to lend a helping hand to Irish landlords looking to acquire rental housing for employees of banks and law firms moving from London to Dublin.

As the U.K.’s struggles to exit the European Union continue, financial industries are moving shop to the Irish capital, fueling a property boom that lenders and investors want to cash in on, according to Bloomberg.

Dilosk Ltd, a lender to landlords in Ireland, issued securities backed by its mortgages last week, and the volume of orders from investors was three times greater than the amount of debt the firm offered. Dilosk CEO Fergal McGrath told Bloomberg his firm already has made plans for another offering of mortgage-backed securities.

Brexit has led British banks, including Barclays Plc, to move jobs to Dublin, so Dilosk expects its next offering of securities to include more loans for upscale properties leased to financial professionals, McGrath said.

Real estate website Daft.ie reports that Central-Dublin house prices are double the level of 2013 and rents are 37% higher than their 2008 peak.

The average monthly rent for a one-bedroom apartment close to Barclays’ new Dublin office is about 2,000 euros. The average monthly mortgage payment for a similar sized-apartment in the area is approximately 1,200 euros a month, according to Daft.ie. [Bloomberg] – Mike Seemuth


Related Articles

arrow_forward_ios
Better.com CEO Vishal Garg (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and YouTube/vishalgarg)
“I’ve never managed more than 10 people in my life:” Better’s CEO fesses up
“I’ve never managed more than 10 people in my life:” Better’s CEO fesses up
Rupert Murdoch with 23 East 22nd Street
Rupert Murdoch’s One Madison unit leads Manhattan luxury contracts
Rupert Murdoch’s One Madison unit leads Manhattan luxury contracts
A photo illustration of 100 Deforest Road in Montauk (Corcoran)
Montauk trailer home discounted by $500K*
Montauk trailer home discounted by $500K*
(Photo Illustration by Steven Dilakian for The Real Deal with Getty Images)
Investors are scoring bulk discounts from strapped homebuilders
Investors are scoring bulk discounts from strapped homebuilders
(Illustration by The Real Deal with Getty)
Hamptons house hunters: If you can’t buy, build?
Hamptons house hunters: If you can’t buy, build?
Michael Flavin (Illustration by Kevin Cifuentes for The Real Deal with Getty Images)
Real estate broker Michael Flavin sentenced in fraud scheme
Real estate broker Michael Flavin sentenced in fraud scheme
Silver Lining Ranch in Aspen (Redfin, Illustration by The Real Deal)
Aspen Mansion sells for a steep $69M
Aspen Mansion sells for a steep $69M
145 Reade Street (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Zillow)
Real estate investor lists Tribeca townhouse for first time in 20 years
Real estate investor lists Tribeca townhouse for first time in 20 years
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...