Pitch the tent lads, we’re going to work in Dublin!
At the rate the housing trend is going in Ireland, more specifically Dublin, this may not be too far from the truth in the near future.
A recent projection from Savills Ireland, has suggested there may be office space for an additional 100,000 workers in Dublin by 2021 and with the projection of new housing at barely one-third of that demand, the question is where are these extra people going to live and how much will it cost?
Rent as of May 2017, has now surpassed Celtic Tiger levels with the average cost now standing at €1784 per month which is a stretch for anybody ‘living’ on the average Dublin wage of €36,519 per annum.
People in the know are calling for increased residential building heights and densities to accommodate people in the city centre to alleviate the strain and urban sprawl that is spreading far and wide. Wexford and Westmeath are now nearly recognised as commuter suburbs of Dublin at this stage.
As I write this, I can see cranes dominating the skyline around the capital and as it was pointed out to me, these are predominantly for commercial developments. These include the recently acquired Capital Dock building by global banking giant JPMorgan Chase for €125m, which is large enough for 1,000 staff not to mention the proposed tallest building in Dublin envisaged by Johnny Ronan.
If this is one of the first signs of Brexit, it doesn’t make for pleasant thoughts for the future of Dublin’s indigenous workforce.
Recently as I was waiting on a friend in the Ferryman on Sir John Rogerson’s Quay, I got chatting to a young American guy who voluntarily transferred from Boston to Dublin by his tech company in search of new experiences.
During the conversation, I asked how he found living in Dublin rent wise and the general cost of living. I was told that he found it expensive but didn’t really know the rent costs because as long as he has been here (4 months) his company has been paying and would be for the foreseeable future.
If that trend continues and the tech companies who dominate ‘Silicon Docks’ in Dublin can just pay the inflated prices for rent in Dublin to the REIT’s (Real Estate Investment Trusts), tents could soon be the only next option!
Patrick
