| 17.6°C Dublin

Huge majority of Docklands tenants coming from abroad to work in tech or finance and have average salary of €127,000


Close

Dublin docklands

Dublin docklands

Dublin docklands

Almost all renters in Dublin's Docklands are now coming from abroad to work in the capital, largely in the technology and banking sectors.

Irish tenants make up just 8pc of those who rented a home in the high-cost area during the past year, according to a new report.

'The Docklands Residential Report 2020' is published today by the Owen Reilly Estate Agency which specialises in selling and renting homes in the area.

Its data shows many workers are increasingly being priced out of the busy business hub by surging rents, which now stand at an average of €2,479 per month.

This is 20pc higher than the Dublin average and expected to go up by 4pc this year.

A total of 52pc of tenants who rented there in the last 12 months are from other EU countries with increasing numbers now also coming in from the USA and India.

In addition, executives coming from abroad to work at international tech and banking firms based locally are generally on far higher salaries.

The report states the average salary of a tenant in the Docklands is now €127,618, up 8pc on a year ago.

The average salary at the upmarket Grand Canal Dock is higher again at €147,000.

Overall, 55pc of renters in the Docklands work in the technology sector with firms including Google, Facebook and Twitter.

The Docklands is also home to the IFSC, with dozens of international financial operations in situ.

In all it makes for a particularly high concentration of workers paid in the top 10pc salary segment.

Most Docklands tenants work in the immediate area (within 20 minutes walk) with just 28pc needing parking spaces. Matching the area's sudden rise in affluence, big funds like Kennedy Wilson and Opus have recently tailored a series of ultra luxury rentals at Capital Dock and at the Opus complex.

Rental yields for those buying investment properties in the Docklands have risen to 6.2pc. However at the same time the sale prices of properties in the location are down by 3.85pc to an average of €623 per square foot.

But smaller and cheaper docklands homes priced under €400,000 actually rose in value by 2.4pc in a year.

The concentration of transient high earners hasn't been lost on the big investment funds which have acquired much property in the area and are predicted to buy every apartment block which comes to completion this year.

While Private Rental Sector (PRS) funds - commonly called 'cuckoo funds' - feature as the strongest buyers of new properties, more than 75pc of those selling homes and exiting the Docklands are traditional small landlords.

Owen Reilly describes this as "a worrying trend" and that it will negate the supply of affordable rental properties in the Docklands.

"Given the increased regulation, the rent pressure zone regulations and high taxation, it is not surprising that small landlords are selling," he said.

Funds recently acquired 268 apartments at Dublin Landings (acquired by Greystar) and 72 homes at the Benson Building (bought by Patricia).

A total of 56 apartments at Ropemaker Place were sold to the German fund Realis.

Mr Reilly predicts that in 2020 "it's likely that all new developments in the docklands will be sold by the block".

In contrast, when it comes to purchasers of second-hand properties, 62pc of buyers are Irish - although this is down from 73pc on a year ago.

Of the remaining nationalities acquiring second hand homes in the area, 16pc are from Europe and 14pc from Asia. Overall 53pc of buyers of second hand homes are owner occupiers, up significantly from 47pc a year ago.

First time buyers account for 60pc of purchases of second hand homes priced up to €400,000.

Owen Reilly also reports increased interest from the UK where buyers are increasingly realising the value of the location in relation to Brexit.

Irish Independent