Tag: tech

While there was a slowdown in growth in some significant luxury markets throughout the world like New York and London, other markets (the “underdogs”) such as Dublin and Detroit performed extremely well. -Dan Conn, Christie’s International Real Estate

I believe that the professional class that is being employed by the tech industry is, and has been over the past few years, fuelling the continued growth in underdog luxury retail markets like Dublin, Ireland.  This is identified in the Christie’s International Real Estate “Luxury Defined” white paper for 2016:

Dublin is a hotbed for tech investment and is attracting top industry employees from around the world.

I started getting a gut feeling about Dublin for about a year now.  I still follow news in the EU, even after moving to Australia then Canada, so stories like Google’s multimillion dollar investment in a second data centre in Ireland has caught my eye.  In December 2015, I started making queries with the Department of Foreign Affairs in Ireland about beginning my visa arrangements into Ireland because I am sensing this growth also.  In 2015, Christie’s also calculated an 11% growth in sales for Dublin and factored it two main indicators – economic growth and the tech sector.  There has been a slow and steady growth of population back into Dublin according to Reuters.  I am wondering if the growth is set on the arrivals for the tech sector? Most likely already experienced in overseas markets and also educated either in Ireland or overseas.

A stronger demographic trajectory also suggests scope for a potentially faster pace of economic growth in coming years. — KBC Bank Chief Economist Austin Hughes

My own personal experience confirms this.

The one, main thing that Dublin requires is addressing the current housing shortage, especially around the areas servicing the tech sector.

I imagine the following to happen within the next five years:

• Plans for the growth of multi-use residential property (aka condominiums) to come into fruition.  Now, I am saying ‘multi-use’, which is not necessarily ‘high-rise’.
• Debate surrounding aforementioned plans as it threatens the low-level charm of the city.  I totally get their concern.  I personally am not a fan of the condo high rises myself.
• Possible innovation that can tackle the need of housing that can also meet the need for cultural and historical preservation with Dublin being seen as a low-rise city.
• Noticeable increase in sales and pricing on residential property. If I was holding real estate, especially in cities with tech investment, I would take on a long position.

When I think of growth propelled by outside forces (ie tech sector workers moving into a new country, non-Irish tech investment), I think of volume and momentum.  In this case, I’m seeing growing volume and momentum towards overall growth in the Irish sector.