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

TRD 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
(Getty, iStock)

Refinancings drove up home mortgage apps last week

Refinancings drove up home mortgage apps last week
40 East 72nd Street and Spiros and Antonia Milonas  (Getty; Google Maps)

Under water: Shipping magnate’s troubled UES condo is bankrupt

Under water: Shipping magnate’s troubled UES condo is bankrupt
U.S. home prices rose with Phoenix, Seattle and San Diego logging the biggest gains (iStock)

US home prices jump 5.2% in August

US home prices jump 5.2% in August
An estimated 12.8 million Americans would owe an average of $5,400 from missed payments (iStock)

Rent debt could reach $70B by year’s end: Moody’s

Rent debt could reach $70B by year’s end: Moody’s
19 Strong Place and 161 Warren Street (Google Maps, iStock)

Brooklyn’s luxury market has best week since before the pandemic

Brooklyn’s luxury market has best week since before the pandemic
14 East 11th Street and 21 East 61st Street (StreetEasy)

“Bidding war”: $28M townhouse tops luxury deals in Manhattan

“Bidding war”: $28M townhouse tops luxury deals in Manhattan
(iStock)

New home sale prices rise but buyers are hanging back

New home sale prices rise but buyers are hanging back
Abandoned malls are being turned into senior housing, giving planners a chance to rethink retirement communities (iStock)

Abandoned malls get new life as senior housing

Abandoned malls get new life as senior housing
arrow_forward_ios

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

Loading...