A report released today shows that Dublin ranks in the top five European cities for property investment for the fourth year in a row.
The analysis was carried out by consultants PwC and the Urban Land Institute (ULI). It shows that, this year, Dublin ranked fourth behind three German cities - Berlin, Hamburg and Frankfurt - in terms of attractiveness for property development and investment.
This comes after Dublin generated €4 billion of property activity in the 12 months to the end of September 2016. Another German city, Munich, was fifth.
PwC Ireland's property head Joanne Kelly said Dublin remained a highly-regarded location for property investment due to above-average growth, a young and fast-growing population, the most business friendly tax regime in Europe and the many multinational companies based here.
" Brexit is also expected to benefit Dublin as a potential alternative to London, with investors believing that there will be opportunities provided by financial services operations looking to set up here in order to continue to access the single market,” she said.
Kelly warned, however, that Ireland needed to be careful that a shortage of accommodation did not affect future foreign direct investment.
The study was based on the opinions of almost 800 property professionals in Europe, including investors, developers, lenders, agents and consultants.
Despite worries about political instability expressed by those in the property sector in Europe, they are only slightly less confident than last year about their business prospects.
Despite falling to 27th place in the table from number 11 in 2016, London is still Europe’s primary magnet for global capital, attracting €31 billion of capital inflows in the 12 months to end September 2016.
90 per cent of those surveyed predict that British investment and property values will fall over the next 12 months as a result of the vote to leave the European Union.
The report says German dominance in the survey is due to investors' current preference for lower risk locations due to political and economic uncertainty in Europe.
The German capital Berlin scored the highest on all four survey categories: investment, development, and prospects for rental and capital growth.
Hamburg’s second position was due in part to the local government’s massive investment in transport and the development of new urban districts along its waterfront.
Frankfurt climbed 11 places to number three, as it is predicted to provide an office destination for bankers relocating from the City of London in the wake of Brexit.
While it has slipped one place to number four, Dublin is still seen to be an overall beneficiary of Brexit. One private equity investor told the study that, while the city is not likely to pick up financial services headquarters from Britain, it will pick up back-office functions, which could still have a big effect on the market.