Is Investment in Social Housing the Next Big Trend for Ireland?
Over the last 6 months in particular, we have seen increased demand for investment in social housing with investors (domestic & international) keen to acquire residential units and schemes let to local authorities on long-term leases.
This is in line with trends elsewhere in Europe and the UK where the investment market for public housing is well established and institutional capital, pension funds, private equity investors and other specialist investors regularly invest in public housing provision.
Until recently, there was no standard leasing mechanism in place to facilitate this form of investment in the Irish market with a combination of approaches being adopted
We believe that over the coming years, the trend will evolve, and a myriad of different structures will ultimately emerge,opening up this investment option to new investors.
Collaboration between the private and public sector has a significant part to play in increasing delivery of much-needed public housing and private sector investment in public housing will assist Ireland’s new Government in their aspiration to deliver 50,000 social houses over the lifetime of their administration.