- The government’s new housing targets aim to deliver 60,000 living sector units per year by 2030, totalling 300,000 units by 2023, just under Knight Frank’s estimated annual requirement of 61,500 units.
- Knight Frank’s analysis accounts for the current housing deficit and population growth projections to 2030, breaking down requirements by age category and buyer/renter type.
- Taoiseach Michael Martin emphasised the need for “stable and predictable” policy to attract and retain private investment, as outlined in the Programme for Government.
- Private sector investment is acknowledged as crucial for financing the targeted 60,000 units per annum by 2030. Additional measures are expected alongside changes to rental caps, infrastructure, and incentives to accelerate delivery.
- Investor interest in Ireland’s Living Sector market is predicted to grow as product demand intensifies and positive policy changes are anticipated.
- Improved debt market conditions and the ongoing shortage of housing options are likely to increase international investor focus on Ireland, especially if certainty is provided on variables like the 2% rent cap.
- €460m was invested in Living Sector assets in 2024, with 49% allocated to PBSA assets. Investor preference in 2025 is expected to be for operational/existing stock and smaller lot sizes between €30 million and €70 million.
- Fundraising momentum continues, with a clear emergence of core funds dedicated to living sector assets, expected to grow throughout 2025.
- Dublin ranks among the top five target cities for Multifamily/PRS investment across Europe, as highlighted by Knight Frank’s European Living Sector Survey.
Joan Henry, Chief Economist & Director of Research, Knight Frank Ireland
For a full copy of this report, please contact Joan.Henry@ie.knightfrank.com or Emma.Courtney@ie.knightfrank.com