Friday 22 March 2019

How foreign investors are squeezing out home buyers

Home ownership in Ireland is plummeting among younger people, meaning US investment giants can reap huge dividends. Stock image
Home ownership in Ireland is plummeting among younger people, meaning US investment giants can reap huge dividends. Stock image
John Mulligan

John Mulligan

Home ownership in Ireland is plummeting among younger people, meaning US investment giants can reap huge dividends.

Kennedy Wilson has credited the trend as it capitalises on the hundreds of apartments it owns, which cost thousands of euro a month to rent.

The group - headquartered in Beverly Hills - has told its shareholders that "billions" of dollars are poised to be invested in apartment projects in the capital.

It confirms a seismic shift, in the capital in particular, towards renting which, especially for younger people, is becoming the long-term norm.

Thousands of apartments in the capital are now owned by property investment firms, which are benefiting from a decade of underinvestment in construction.

Separately, a leading developer warned Ireland's housing market is now totally dysfunctional, with workers priced out of ever owning their own home.

Michael O'Flynn said that the Central Bank had over-corrected since the crash, now effectively punishing young families who should be the bedrock of Ireland's recovering housing market. "The standard couple back in the 1970s could actually afford to buy a house. The standard couple today - and I use the expression 'garda or nurse' - are struggling to buy," he said.

Irish Independent

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