In recent years, the demand for affordable housing in major cities around the world has led to the emergence of a new kind of landlord – the institutional investor. These investors, typically large financial firms and pension funds, have been snapping up properties in urban areas with the aim of renting them out to local authorities or housing associations to meet the growing demand for social housing. In the latest example of this trend, a major investment giant has acquired flats in Dublin’s Blackrock with the intention of offering the units to the local council for affordable housing. In this article, we explore this development and what it could mean for the future of social housing in the Irish capital.
M&G Real Estate, the global investment firm, has acquired a housing development containing 67 apartments in the Dublin suburb of Blackrock for €31.3m. The Butter Yard development’s two blocks are being leased to Dun Laoghaire Rathdown County Council for 25 years for social housing. The deal equates to an average price of €460,000 for individual one and two-bed homes. M&G said the development would add to social housing supply in the city. It follows the group’s acquisition of a 148-unit development at Eglinton Place in the city for private rental tenants.
In conclusion, the recent acquisition of flats in Dublin’s Blackrock by an investment giant to rent to council tenants represents a positive step towards addressing the housing crisis in Ireland. While some may view this move as a purely profit-driven venture, the reality is that it will provide much-needed homes for those who might not otherwise have access to affordable housing. As the government continues to grapple with the complexities of the housing market, we can only hope that more private companies will follow suit and help to alleviate the burden on those who are most in need. Ultimately, the goal must be to create a sustainable housing system that is accessible to everyone, regardless of their background or financial means.
