Ireland is turning out to be the darling of international property investors in 2015, particularly wealthy buyers from America.
With dollar strength and euro weakness combining to present significant value in Irish real estate, US buyers are investing heavily in distressed Irish property, both commercial and residential.
The most recent transaction in Ireland’s commercial market is the sale of Manor West Retail Park in Tralee, Co Kerry to New York based Marathon Asset Management . The firm, which has just over €11bn of capital under its management snapped up one of Ireland’s best-performing shopping centres in a deal worth €59m.
Marathon’s new investment will be held in an Irish-registered company called Bryant Park and is expected to show an initial yield of just over 7%. The retail park covers an overall floor area of around 32,515sqm and is tenanted by a strong mix of high-profile traders including Woodies, Next, Halfords, TK Maxx and Dixons.
American interest in Irish real estate is currently surging on the back of the euro being equal to just $1.1, its weakest position to the dollar in almost 12 years. Ireland is an increasingly popular retirement destination and is expected to grow as retirees enjoy more buying power in the Eurozone.
Americans seem set to continue buying up Irish property , particularly as domestic buyers struggle to afford homes in a rapidly inflating market. Shortage of residential stock and increased foreign buyer interest, particularly in Dublin drove prices up 13.8% in May amid concerns of a possible housing bubble.
Financial analysts believe that the dollar will continue in strength throughout the year although the outlook for the euro remains questionable. It is likely that the trend of American buying in Ireland’s value-laden property markets will increase considerably in the next few years.
Source:: Property show rooms