How to Invest in Irish Property with €50k
Ireland’s property market continues to grow as the country’s booming population drives demand for development in an under-supplied market - making it a potentially a good time for investors to pursue opportunities in Ireland’s real estate market.
Analysts at CBRE Ireland say that Ireland’s real estate market is bouncing back from the coronavirus pandemic and could see transaction volumes reach pre-pandemic levels in the next 12 months, The Irish Times reported.
But you don’t need to have millions to start investing. There are plenty of ways for investors to diversify their portfolios without committing a large sum to one property venture.
Here are a few options for Irish property investors in 2022
There’s much more to property investing than simply buying and selling land or properties. As Ireland’s real estate market gears up for another year of growth, investors will have plenty of opportunities to grow their assets in various ways.
Listed Irish public limited companies
As Ireland’s property market struggles with a limited supply of residential homes, investors can consider buying into homebuilders that are actively working to meet widespread demand.
Ireland’s leading homebuilder, Glenveagh, saw remarkable growth in 2021 despite ongoing restrictions and supply chain challenges due to the coronavirus pandemic. The company completed 1,150 homes and generated €476 million in revenue in fiscal year 2021, a significant increase from the previous fiscal year when it reported €232 million in revenue.
Another Irish homebuilder, Cairn Homes, specialises in sustainable residential homes. The company also saw significant growth in 2021, reporting €423 million in revenue, and is projected for more growth in the next few years.
Property funds
Property funds give investors the opportunity to purchase shares in diverse portfolios of real estate companies and properties.
The Zurich Life Property Fund is one of the more popular options for Irish investors. The fund invests in offices, retail spaces, industrial properties and mixed-use developments in Ireland and abroad. Note that withdrawals could be deferred and investors may not have immediate access to their money.
Hibernia REIT is one of Ireland’s largest real estate investment trusts that specialises in high-value commercial properties in and around Dublin.
There’s also Irish Residential Properties REIT that acquires, holds, and manages nearly 4,000 private rental properties across Ireland. As demand for rental properties continues to rise, fund managers expect to see continued growth and strong returns for investors.
Other types of real estate companies
Investors can look beyond traditional builders and consider the various companies that support real estate development in Ireland.
Development crowdfunding firm Property Bridges has been helping Irish builders connect with investors to finance construction projects since 2018. The unique lending model is designed to make it easier for developers to secure financing while offering lower entry levels for investors.
Crowdfunding platforms also give investors more control over which development projects they invest in, which can be ideal for more experienced real estate investors who crave a hands-on approach.