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
April 21, 2019 12:00PM

(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