Institutional investors have commonly been credited with causing the rise in property prices. However, stockbroker Davy, claims otherwise and says they are not to blame. The report by Davy credits the inflation in house prices to be caused by the Bank of Ireland’s strict mortgage-lending rules. The pressure on the housing market has caused many people to become interested in the rental market causing pressure there too and a 7% rise in rentals.
Institutional investment has been rising exponentially in Ireland. It has grown in sales to a total of 1.1 billion Euros in 2018 up 200 million Euros from the previous year. These figures may seem high, but only account for 30% of total property investments in 2018 and do not have a big enough impact on the market to make a tremendous impact. Additionally, most of those investment occurred in Dublin where the top 25 transactions account for 2,370 units worth 954 million Euros in 2018.
Davy analyst Conall Mac Coille commented, “People have, however, confused the chicken with the egg,” and “Institutional investors have been attracted here …
