Dublin tops FDI class but warning property shortage may hit growth
Fewer office completions next year could hold back city's growth
Dublin has been ranked first in its class as a city destination for foreign direct investment (FDI), and third overall in the world.
However, the news comes amid supply concerns about office and residential space, with Dublin in the grip of a housing crisis, and estate agent Savills warning that office supply will be tighter next year.
The rankings were compiled by a division of the 'Financial Times' newspaper, which said Dublin was the best 'large city' for FDI. Singapore and London - the top two overall - were ranked as best 'major city' and 'mega city' respectively. "In the five-year period analysed, almost half of all investments in [Dublin] were tech-based. US-based Equifax, which provides information solutions, credited its November 2017 announcement to expand its Dublin operation to Ireland's globally recognised reputation as a tech hub," the report says.
But Dublin's growth may be held back if there isn't enough living or working space for employees of FDI companies.
As many as 6,700 jobs were created in the tech sector between July and September this year, according to a report from Savills. And while Savills believes this year will be a record-breaking year for office take-up, 2019 is expected to be a tighter year for new supply.
"On average, forecasting institutions predict that the economy should expand by 6.9pc and 4.2pc in 2018 and 2019 respectively. This is very strong growth by historical and international standards which should lead to further jobs growth and absorption of business space," said Dr John McCartney, director of research at Savills.