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
The number of seriously underwater homes dropped from 3.5 million at the end of 2019 to 2.25 million by the end of 2021’s second quarter. (iStock)
Housing boom rescues more than 1M underwater mortgages: report
Housing boom rescues more than 1M underwater mortgages: report
Vector Group CEO Howard Lorber (Getty)
Elliman’s record 195% revenue jump, $43M profit just the beginning: Lorber
Elliman’s record 195% revenue jump, $43M profit just the beginning: Lorber
The flurry of deals can be attributed to low mortgage rates and vaccinations making residents feel safer. (iStock)
July contract signings surge in city, sink in suburbs
July contract signings surge in city, sink in suburbs
56 Leonard Street (56 Leonard Tribeca and StreetEasy)
$50M penthouse at 56 Leonard Street goes into contract
$50M penthouse at 56 Leonard Street goes into contract
Upcoming issue: Surreal estate
Upcoming issue: Surreal estate
Upcoming issue: Surreal estate
Madison Realty Capital's Josh Zegen, 1580 Nostrand Avenue and Hello Living CEO Eli Karp (Madison Realty Capital, Hello Living)
Madison Realty Capital aims to foreclose on Hello Living’s 1580 Nostrand Ave
Madison Realty Capital aims to foreclose on Hello Living’s 1580 Nostrand Ave
The realtor pointed towards race as a factor in the police officers’ response. (iStock)
Black realtor and client handcuffed for showing home
Black realtor and client handcuffed for showing home
Homebuyers will be able to utilize ClimateCheck data to assess property risk on Redfin listings (iStock)
ClimateCheck data added to Redfin listings
ClimateCheck data added to Redfin listings
arrow_forward_ios

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

Loading...