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Category: Republic of Ireland

Irish property development financing
Feb
16

Time Is Ripe For Irish Property Development Financing

There is so much going on in the Irish property world that it is quite difficult to know where to start. Barely two months into the year and the Irish property journals, blogs, and newspapers are all brimming with a positive outlook.

Irish property development financing is now a viable short and medium-term investment. That doesn’t mean that there are no problems in paradise, but overall, Irish property is doing well.

All the activity, growth projections and the Government announcements relating to infrastructure investment indicate that Ireland is the place to be at least for the next decade.

 

Faith in the Future

When the government puts forward its plans to make a substantial dent in the housing shortage, things begin to change. This is exactly what has happened in Ireland.

Towards the end of 2017, the Bank of Ireland announced that it would be providing €1bn for property development in the Republic. This kind of approach fuels the optimism in the market countrywide.

This is more than four times more than the €250 million that was made available in 2014. Definitely signifying a substantial shift in development confidence.

After the tracker mortgage debacle, the Bank of Ireland has continued to identify accounts that will enjoy redress. This means that 14,500 customers have now been identified as having been impacted by the problem since 2010.

And an additional 6,000 customers having been identified for redress. This shows that there is good faith in the property industry and the banks are working hard at said redress.

The bank has now adopted a policy where proper home building strategies will be encouraged and financed, rather than the land hoarding of the past which may have contributed to stagnation in the property development industry.

Property development financing has already included the financing of over 3,500 housing units and 1,500 student beds. They have clearly positioned themselves to grow this area of their portfolio.

 

Government Investment in Infrastructure

The Irish government has allocated a €116bn investment into future infrastructure including housing, health, and environment. This has been planned over the next two decades.

Private industry is therefore taking the cue for a surge in the market. With the knowledge that new infrastructure will be built by the government, private business is now prepared to get on the bandwagon.

 

Dublin – Roads Paved with Gold

Recent figures indicate that Dublin commercial rents are now as much as six times higher than they are elsewhere in the country. They are also rising and expected to reach an increase of between 5% and 6% during 2018. Prime industrial rents are expected to rise by as much as 7% across the capital.

During 2017, there was a record uptake of commercial property leasing, especially offices, indicating an increased demand. The domino effect that can be expected from this is a kneejerk reaction coming from industry to prevent a shortage and any related crisis this may precipitate.

The jury is still out on whether office space will continue to be scooped out or whether vacancies will increase. Property professionals don’t agree on the details. Quality office accommodation is expected to increase in demand even if overall occupation decreases.

 

What This Means For Irish Property Development Financing

The ongoing growth in the Irish property market has been fuelled by government investment. This is an indicator that development opportunities will abound over the next few years. It can be expected to continue almost certainly for the next decade.

Catapulted by the government’s commitment to invest, Irish property development financing is likely to become a catalyst for the privately funded market.

Access to investing in the Irish property development market does not need to be difficult. Sometimes, when gaining access as a UK investor, hurdles can be experienced. It doesn’t really have to be once the property development financing has been arranged.

This is usually sourced and managed by an experienced, resourceful, and reputable broker or financial advisor. Belgravia Property Finance has an excellent network of both investors and financiers who offer private finding. Whether you are looking for a mezzanine loan, Irish property development financing, or Irish bridging loans, Belgravia are the people to speak to.


Irish Property Development
Feb
09

Irish Property Development or Buy To Let in Ireland?

When deciding whether to invest in property in Ireland, whether you are a local or foreign investor, you will want to decide where you want to place your investment. Should it be in Irish property development or should it be in Irish buy-to-let opportunities?

Both are currently excellent opportunities so making the decision will depend on your approach to investment and what you want to get out of it. It will also depend on how long you want to be locked into the investment. Alternatively, perhaps you’d be interested in a blend of both approaches.

 

Irish Property Development

For most developers, the investment is a turnover project. Property developers will invest in a project to turn it over, make a profit, and then start with a new project investment. This makes property development projects a short-term, high-return investment for most.

Investing in Irish property development is no different. After the 2008 crash, property development became the pariah of Irish investments. Those that understand economic cycles, however, understood that with recovery the Irish property development market would return. And so it has.

 

Track Records Matter

Once bitten twice shy may be a common idiom used in daily language. Many use it when it comes to investment too. However, the Irish government demonstrated one of the most invigorating post-2008 recovery strategies.

When a government displays an economic strategy that brings life back to markets that few thought would recover then both short and long-term investments become a worthwhile risk.

You will hear words like bubble and cycle and all sorts of other terms that may strike the fear of God into you when researching Irish property development. Remember that this should happen regardless of where you may choose to speculate.

Irish property investments currently rest on the backbone of supportive policy from the Irish government. As recently as 2017, new tax breaks have been introduced that favour investors, including those that buy to let.

This is happening while the UK government is tightening the thumbscrews on landlords. It would be unsurprising if property investors and developers start to migrate across the channel, especially in the wake of Brexit.

 

Funding for Irish Property Development

As property developers grow their portfolios, they also tend to tackle bigger and better projects. There should always be a good capital return on completion of a project. These returns, however, slow profit growth when they are used exclusively to develop the next project.

Using the returns to fund the next project makes sense. The size of the next project can also be substantially increased when quality funding is sourced. Short-term funding such as mezzanine funding and bridging loans all make up part of the property development funding. This is the type of funding that turns projects over rapidly. Done correctly, this produces high yield returns.

 

Finding a Good Broker

You may think that you have scored a bonus when you find a funding source that can provide you with excellent bridging loans and, in some cases, mezzanine funding too.

However, an experienced consultant that can help cover all aspect of Irish property development finance will help to carry you through the ups and downs of the development project and what happens when cash flow gets tight.

Advisors and brokers such as Belgravia Property Finance can also help you to source invoice trading. There are also other quick business finance that the high street cannot offer. For a broad spectrum consultancy on all your needs throughout your development project, contact the specialists at Belgravia Property Finance for that extra personal and confidential consultation.


Property development loans in Dublin
Feb
02

Market Growth – Property Development Loans in Dublin


The devastation that the 2008 crash brought upon the Irish property development market is no secret. In fact, there were conversations about whether it would ever recover.

Of course, there are half glass full and glass half empty people. The dire impact on the Irish economy did, to some extent, feed the pessimism of the glass half empty folk. The availability of property development loans in Dublin are now emerging as new growth is stimulated in the recovery.

Irish Recovery from the 2008 Crash

The Irish government nevertheless displayed a spectacular courage and strategy to resolve the economic crisis of the time. In fact, the admirable recovery is often cited by economists worldwide about to do something right.

The one very evident consequence was the stagnation of property development in the immediate aftermath of the 2008 crash. This lead, in subsequent years, to a high demand for property simply to accommodate population growth and movement.

Together with the progressive recovery, the Irish government empowered the property development loan as a phoenix rising from the ashes. Although there are slight fluctuations in growth, the Irish property market remains promising. Property development has again become a favourable investment.

UK Political Activity

It could be argued that political activity across the Irish Sea, such as the UK referendum on Brexit, has influenced this growth even further. Together with Ireland’s apparent political stability, the capacity of her government to lift the country out of economic crisis and ongoing growth, Ireland is becoming a favourite investment location once again. The demand for property development loans has resurfaced in the Irish Republic.

Demand for Property Development Loans in Dublin

Mainstream banks continue to have stringent criteria that will sometimes exclude property developers that need more flexible lending. Irish property developers continue to look for funding outside the high street and private funding has become available again.

Funding for commercial and residential property development loans in Dublin is reaching new levels in terms of demand. This could be because the proximity to the UK makes Ireland an attractive investment without all the speculation surrounding the Brexit process.

Ireland desperately needs an increase in available property. As developments increase, the demand for property will grow, fuelling the development market. There are those that argue that the uncertainty in the UK will have a negative impact on Ireland. Thus far it seems that the opposite effect has taken place.

Property Demand and Price Increases

Ireland needs more homes than it has available. There is substantial government sourced funding available for social housing. There is also a clear demand for private investment in property development loans.

The rise in house prices is indicative of this growth and the expected continued growth over the forthcoming years. If anything, Ireland is set to boom. Those looking for a way around the UK departure from Europe will look to their closest neighbour for resources and business growth.

Get a Good Broker

Experienced brokers are once again able to source some of the best Irish Property development loans in Dublin for investors seeking to develop and make a sound profit on property development. It’s a win-win situation for both the borrowers and the lenders. Even while mainstream banks are avoiding being drawn into the demand.

Belgravia Property Finance can source funding for developers and refer excellent development prospects to private financiers. With exceptional experience and a sterling reputation, they are a really good choice for advice and support.


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