Property prices getting in the way of Ireland's business with the US

Dublin
Dublin Copyright Canva
By Greta Ruffino
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Ireland is home to hundreds of US companies but the rising cost of property is proving to be a complication for business.

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Housing is seen as the main obstacle for US companies operating in Ireland, according to the American Chambers of Commerce and as reported by Ireland's public service broadcaster RTE.

Specifically, 98% of the US firms surveyed found it hard to secure housing for their staff in Ireland, with 73% describing it as very or extremely difficult.

The housing problem for US companies in Ireland may be further underscored by recent trends in property prices.

In the 12 months leading up to January 2024, the national Residential Property Price Index (RPPI) rose by 5.4%. According to recent data released by the Central Statistics Office (CSO), prices in Dublin were up by 4.5%, while prices outside Dublin saw a larger increase of 6.1%.

There was a fall of 1.5% in registered purchases in January 2024 compared with January 2023, while the median price of a property purchased in the 12 months leading up to January 2024 was €330,000.

Nationally, property prices have surged by 141.2% since hitting their lowest point in early 2013. Residential property prices in Dublin have climbed by 140.0% from their low in February 2012, while residential property prices in the rest of Ireland are now 150.6% higher than they were at their lowest point in May 2013. 

According to the American Chambers of Commerce, nearly half of those who answered the survey said overcoming the housing obstacle was crucial for their company's growth in Ireland. The relationship between the two countries brings €41 billion annually to Ireland, with 970 US companies operating in the country and employing 378,000 people.

Meanwhile, Ireland still ranks as the ninth largest contributor of Foreign Direct Investment (FDI) to the US. Around 500 Irish companies provide jobs for nearly 100,000 people across all 50 states.

"In these uncertain times, Ireland offers a stable political and business environment. Ireland operates a competitive, pro-enterprise economy with our policy evolving to ensure we meet business needs and challenges in this ever-changing environment," said Department of Enterprise, Trade and Employment minister Simon Coveney.

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