Ireland’s Business with the US Hindered by Rising Property Prices

Ireland’s Business with the US Hindered by Rising Property Prices

Ireland is home to hundreds of US companies, but the rising cost of property is becoming a challenge for businesses. Housing is identified as the main obstacle for US companies operating in Ireland, with 98% of firms surveyed finding it difficult to secure housing for their staff. 73% described the situation as very or extremely difficult. Recent trends in property prices show a 5.4% increase in the national Residential Property Price Index (RPPI) in the 12 months leading up to January 2024. Prices in Dublin rose by 4.5%, while prices outside Dublin increased by 6.1%. The number of registered property purchases fell by 1.5% in January 2024 compared to January 2023, with the median price of a property purchased in the same period being €330,000. Property prices nationally have risen by 141.2% since early 2013, with Dublin experiencing a 140.0% increase from its lowest point in February 2012, and residential property prices outside Dublin are now 150.6% higher than their lowest point in May 2013.

Nearly half of the respondents in the American Chambers of Commerce survey indicated that overcoming the housing obstacle was crucial for their company’s growth in Ireland. The economic relationship between the US and Ireland brings in €41 billion annually, with 970 US companies operating in Ireland employing 378,000 people. Conversely, Ireland ranks as the ninth largest contributor of Foreign Direct Investment (FDI) to the US, with around 500 Irish companies creating jobs for nearly 100,000 individuals across all 50 states. Department of Enterprise, Trade and Employment minister Simon Coveney stated, “In these uncertain times, Ireland offers a stable political and business environment. Ireland operates a competitive, pro-enterprise economy, with policies evolving to meet business needs and challenges in the ever-changing environment.”

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