Local developers have key role to play in attracting international investment for housing

Irish Times

7 days ago

The prospects for addressing the State's housing constraints face complex challenges. But the challenge to scale development also comes with opportunity.
So, how do we fast-track the institutional infrastructure and deploy the capital we need? The most effective response will come from a bottom-up approach and greater success in scaling housebuilders at a local level. If we can implement the necessary structural market changes, we can go a long way toward solving the housing problems that are limiting the State's potential.
We've seen what's possible in delivering stock to the market with the success of our listed housebuilders, like Cairn and Glenveagh, along with privately owned Irish developers having international success, such as Ballymore. Central Statistics Office data show that 30,330 housing units were delivered in 2024, with Cairn and Glenveagh accounting for 15 per cent of that total.
'We're at a critically low level of housing stock' for buyers and renters
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The figures also highlight the issue of concentrated development, as more than half (54 per cent) of the units were built in the Greater Dublin Area. This underlines both the challenge and the opportunity to expand regional capacity beyond the capital and its surrounding counties through an institutional or listed housebuilder. TPG's recent investment in Quintain Ireland's newly rebranded platform, Evara, highlights the strong appetite large-scale capital has for investment in the Irish residential market.
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In conjunction with the call for accelerated development and regional spread comes the parallel demand for a full range of housing to satisfy market demand across the market. This includes for sale, social and affordable, student accommodation and rental product. The latest Daft.ie rental report, charting a record low level of housing stock available, shows that market interference has not worked. To address this, the Republic urgently requires more real estate managers and providers, such as Ires Reit and Kennedy Wilson.
Greystar is one of the largest international platforms to have established a team here, with more than one million residential units under management globally. The future of our rental market is reliant on them growing, along with attracting institutional capital of similar quality and calibre into the country. We need these industry leaders to invest and grow if we are to match the ambition that we see from working with our international teams across other housing markets.
Director at Interpath Advisory Clara Coakley: The State remains a largely attractive proposition on a pan-European basis.
There is no doubt that the foundations to build upon in the Republic are strong. This is especially true in terms of our resilient economic record and sustained inward migration. All of this combines with this State's growing base of global corporations, which have driven consistent demand across residential, commercial and mixed-use assets. The State remains a largely attractive proposition on a pan-European basis. Institutional investors are still drawn because of those relatively strong metrics. Solid occupancy, rental demand and long-term growth potential exist across the asset classes. This applies not just in the private rented sector and co-living, but in urban regeneration, logistics, life sciences and sustainable retrofit.
However, we are still far short of fully capturing the interest of international capital to reinforce the necessary flow of investment. Policy consistency and investment opportunities of scale remain elusive within the Irish market. Liquidity, risk profile and the ability to execute on a pipeline all factor into how capital gets allocated. On that basis, the Republic can sometimes be harder to sell than should be the case.
Institutional capital is always looking for large, highly experienced platforms to invest into. There is global recognition of the housing dislocation in the Republic and the opportunity that exists. As this State is competing for this capital with other European countries, we must continue to develop best-in-class teams to make it as compelling a case as possible.
No one is suggesting that the challenge and path ahead are easy. However, if we are to maintain economic growth and social progress, we must enable another level of institutional-grade development and asset-management platforms. That means being led from the ground up by domestic developers, local managers and delivery teams. They play a crucial role in attracting new capital into the market, building investor confidence and ultimately more homes and communities.
The State's housing and infrastructure needs are urgent. We shouldn't confuse urgency, though, with short-termism. Delivering volume today without building the platforms for tomorrow will only deepen our dependency on an uneven and fragile supply chain. The Irish market cannot wait for political conditions to align perfectly. We need to prioritise the continual advancement of our development platforms and investment structures. These will attract the necessary capital to radically increase our output in all forms of housing. If we can grow more of that ambition and capacity from the ground up, the capital will come, and housing infrastructure will scale on a faster track.
Clara Coakley is a director at Interpath