NAMA can fund up to 50pc of Dublin's housing needs over next five years
NAMA can fund up to half of Dublin’s housing needs over the next five years, it has been announced.
It said 3,000 properties are shovel-ready across the capital with another 19,000 at design or pre-planning stage.
Property prices are set to keep rising this year with double digit growth expected for the capital. A shortage of supply of suitable family homes has been blamed for driving up the prices.
Unveiling the strategy for NAMA’s final years, Finance Minister Michael Noonan said he believes the bad bank has a “huge role” to play in plugging that shortage.
“It has the potential to do that, it has the money to do that, and it has the expertise to do that,” the minister said.
Estimated demand in Dublin stands at up to 10,000 new residential units per year. NAMA claims it has access to sites which can deliver 22,000 new houses and apartments in the capital over the next five years and it has committed to funding delivery of 4,500 by 2016.
Chairman Frank Daly said a residential team has already been set up to drive forward the strategy.
In addition, NAMA has been charged with developing Dublin’s Docklands to rival prime international waterfront sites like London’s Canary Wharf or Singapore’s Marina Bay.
Mr Noonan said the area was very important strategically to both the economic life of the capital and the entire country.
The toxic loans agency has also committed to repaying a minimum of 80pc of its senior debt by 2016 – two years earlier than planned - which the minister said could potentially boost the value of state-owned AIB.
Mr Noonan said the Docklands provided a “unique opportunity” for both NAMA and the taxpayer to develop Grade A office space, retail and residential units.
“I think it has the potential to be the Canary Wharf of Dublin,” the minister said.
“If you look at all the European cities and the great American cities, there’s hardly any city left that has such an extensive piece of development land so near a centre which also has a waterfront.”
Mr Noonan said NAMA had proved to be very successful.
“It has done the job so far that we have asked it to do. And it’s two years ahead of schedule on the timeline for the disposal of the assets,” the minister said. “
“It looks now as if it’s going to be a quite profitable organisation and all the indications are that it will run a surplus and a significant surplus by the time it has disposed of the remainder of its assets.”