US property developer Hines is to build more than 1,200 rental houses in south Dublin, at a cost of €450m, “in the coming years”, writes Geoff Percival.
The project forms part of the planned town centre development at Cherrywood in southeast Dublin.
Hines will develop the ‘build-to-rent’ residential and ancillary retail aspect of the project as part of a joint-venture with Dutch pension investor APG Asset Management. The two will fund both the land and construction of 1,221 build-to-rent apartments, along with street level shops and cafés.
The overall Cherrywood project involves the building of more than 7,700 houses, six schools, three parks and leisure facilities. It will be served by the Luas and serve an estimated population of 25,000 people.
The Hines announcement follows further warnings, this week, over Ireland’s escalating housing crisis. Ibec said that for the estimated 30,000 to 40,000 new house builds per year needed to satisfy demand to become a reality, up to 80,000 construction jobs will need to come on stream by 2020.
Ibec’s head of tax and fiscal policy Gerard Brady said housing will remain the key challenge for the Government. “The major question facing the economy over the coming years will continue to be the ability of the economy to meet the needs of a growing population in a sustainable manner. Major challenges are already clear in the housing sector,” he said.
Goodbody chief economist Dermot O’Leary warned that house prices will continue to rise despite a sharp increase in the number of homes under construction. Goodbody said 1,191 new houses were registered in November, up 53% year-on-year, but that other indicators are overstating supply.