Andy Brainin, Director at South Hill Capital, offers his thoughts on Dublin’s future.
Brexit discussions are moving on to the next stage and much of the chatter in Ireland surrounds the plan for the border and the practical challenges that it will bring. This has, unsurprisingly, led to a fair amount of negativity around the topic. Interestingly though, when it comes to the impact on businesses in Dublin, people are incredibly optimistic about the opportunities that Brexit will bring.
It is no secret that Dublin is expecting an influx of large financial and legal corporations as it continues its campaign to be the city of choice for European headquarters relocating away from London. We recently conducted a survey of 220 Dubliners which found that the vast majority of people expect this to benefit existing small and medium sized businesses already in the city, as well as boost regeneration, transport infrastructure and job opportunities.
In fact, 86 per cent felt that the introduction of these companies would in some way have a beneficial impact on existing businesses in the city, while 81 per cent believe there will be more job opportunities in the area. Assuming this will be the case, it is easy to see why interest from investors in commercial and residential property in the city is hotting up.
It is expected that the biggest winners will be the retail and leisure operators, with 62 per cent optimistic that they will benefit from the influx of people moving to the City for work. Again, from an investment point of view, this opens up opportunities for developers and investors.
Historically investment in Dublin has focussed around the four central zones, but with 79 per cent of respondents anticipating a knock-on effect in the speed of regeneration of previously neglected areas of outer Dublin, there could be good reason to look away from traditional investment hotspots in order to secure longer term gains.
Opinions weren’t all positive though and alongside the optimism, there is an understanding that certain issues desperately need to be addressed. For example, there is real concern about the impact of an increasing population on the city’s already strained infrastructure, with 92 per cent worried that there will be a negative impact on traffic congestion. Equally, 83 per cent of people are concerned about parking availability.
As a business that already has over 30 million Euros of residential and commercial assets in the city, we are genuinely excited about what the future holds for Dublin but also well aware of the need to be smarter with how we develop and manage properties in order to take advantage of the changing market place.