Soon after the EU referendum vote, the Irish capital began making headlines as eyes turned westwards and Dublin emerged as a potential prime destination for companies considering relocating their London offices elsewhere in the EU. In fact, Dublin is already home to some large corporates in many high-value sectors, such as Citibank, Bank of America, JP Morgan, Google, LinkedIn, and Facebook.
Many of these companies (and others who are contemplating a possible relocation to Dublin) have chosen to be based here given key benefits like low corporation rates, a transparent and highly competitive tax structure, and flexible labour laws. Moreover, the Irish executive has recently introduced a tax relief scheme available to US investors looking to relocate their offices to Dublin and other Irish cities, and campaigns like TechLife Ireland are positioning the country high up in the global tech scene. Lastly, Dublin is experiencing a commercial construction boom, which will result in over 12 million square feet of new office space added by 2021. In the minds of office occupiers and investors, all these factors converge into one question: Is there any truth to Dublin becoming a serious challenger to London in regards to office space?
If we look at recent facts and figures, we can spot many similarities between both capitals:
- There are currently 39 office buildings under construction in Dublin, 33 per cent of which are pre-let, and developers have planning consent for an additional 97 office buildings. London also has a high number of high rises in its development pipeline – 199 to be exact.
- Strong demand for office space in Dublin is causing vacancy rates to decline steadily and rental values to increase. Vacancy rates currently average 9 per cent, but are forecast to drop to 7.9 per cent by the end of the year. A similar trend has been observed in London, where availability remains tight.
- Demand for flexible and shared office space is on the rise with occupancy levels at 90 per cent. At 900 Euro / workstation, prices in Dublin are already on par with those in London, which is considered the world’s largest co-working market.
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