Rental Yields & Property Investing in Dublin 3

Posted on 27 Feb 2016 by Colin Napper

What are the rental yields in Dublin 3

The leafy suburbs of Killester & Clontarf that border with St Anne’s Park and the North Dublin Bay Coastline really has an established and solid property market. These established and affluent areas of Dublin 3 have never contained a large quantity of rental properties. This is mainly due to property prices making it not as attractive for landlords looking for an attractive yield to invest.

For Example a magnificent new development developed on the old Dollymount Public House grounds Seascape are listed at between €340,000 – €455,000 for a 2 bedroom apartment.

Let us look at why;
Property purchase price €340,000
Stamp Duty €3,400
Professional Purchase Fees €2,500
Basic rental fit out €8,000
Total Investment Costs €353,900

Return on investment;
Rental Income @ €1,600pm €19,200 pa

Gross Yield @ 5.4%

Now looking at this against an average in the capital of approx. 8% it’s no surprise that it’s not a rental hotspot. However I would state that if you’re looking for a steady investment in which your investment is at a lower risk such as a pension fund then this is certainly an area which needs to be looked at very closely.

City Side of Dublin 3

The city side of Dublin 3 which includes Marino, Fairview, East Wall and North Strand offers a much more lucrative yield for any investor landlord. Being located on the city side the market is established but has a lot higher percentage of rental homes in its community. There is many large employers’ in the area with East Point Business Park in Dublin 3, the areas are also only a 15-20 minute walk into the city with great public transport links also.

Let’s look at a popular established apartment complex in the area such as Crosbies Yard right in the heart of the city side of Dublin 3 in East Wall.

With this being an established development prices range,
Purchase of 2 Bedroom €230,000
Stamp Duty €2,300
Professional Purchase Fees €2,500
Fit out costs €4,000
Total cost €238,800

Return on Investment
Rental income @€1,550 €18,600

Gross Yield @ 7.7%

The Dublin 3 market is established and the city side has maintained a solid rental market even through the years of the property crash in 2007-2012. With solid roots in the stable property market they are not as strong as Clontarf and Killester but a jump of over 3% of a yield see’s this market a worthwhile investment. From my experience I would state that the average term of tenancy in this part of Dublin 3 is lower but this trend can be bucked by selective tenant selection.

Hidden Gems & Increased Margins
“You must have some knowledge of a hidden gem coming on to the market?” Or “Could you let me know if anything is coming on to the private market?”

These are questions we get asked all the time and to be honest the truth is we do have the knowledge and opportunities to go beyond the average and get a 12%+ yield in Dublin 3. Obviously for the sake of our business we won’t share all the secrets on a public forum but would be delighted to talk with you offline on how we can achieve the 12% yield all landlord investors seek in an established property market.

Reach out to us today info@swipepropety.ie