Dublin remains in the number two spot for the second year running for real estate investment and development in Europe, according to Emerging Trends in Real Estate Europe 2015, a forecast published jointly by the Urban Land Institute and PwC.
Ranking Berlin in the number one position, the report states that Dublin has strong rental growth potential based on low supply, coupled with employment growth.
A huge amount of capital has poured into Dublin already, €2.2bn in the first three-quarters of 2014, according to Real Capital Analytics.
Though office rents and values are recovering strongly, they still have some way to go before they regain their pre-crisis peak.
Enda Faughnan, real estate leader, PwC Ireland, said: “There has been heightened interest in Dublin as a property investment centre, particularly from foreign investors. There is still a lot of supply to come onto the market which will appeal to a wide range of buyers.”
The report highlights a surge in popularity for real estate investment opportunities in a number of cities that were hit particularly hard during the last market downturn, such as Madrid (up 16 positions), Athens (up 23 positions), Birmingham (up 14 positions), Amsterdam (up 17 positions) and Lisbon (up 17 positions).