Cork is Ireland's second wealthiest region — Davy

Wealth management firm has almost €2.7bn in funds under management in the Munster region, with Cork clients accounting for 43% of this

Tue, 04 Jun, 2024 - 14:53

Alan Healy

A range of economic indicators place Cork as Ireland's second wealthiest county in Ireland after Dublin, according to new analysis by Davy.

The stock broker and wealth management firm said Cork had seen exceptional progress across a range of economic sectors — including pharma and tech — positioning itself as a hub for business and investment.

The firm has almost €2.7bn in funds under management in the Munster region, with Cork clients accounting for 43% of this. The average fund per client for the province stand at €1m.

CSO data for 2021 on disposable household income positioned Cork, at over €14bn, second to Dublin with almost €40bn. Galway ranked third at €6.4bn.

Tax receipts for 2022 across Vat, PAYE, and corporation taxes see Cork, at over €13bn, again positioned second only to Dublin, at over €37bn.

A review of the Property Price Register (2023) for new and second hand houses shows Cork had 74 homes worth €1m or more, second only to Dublin, at a significant 1,269.

Luxury car registrations shows Cork accounts for 11% of all luxury cars registered in 2022, again behind only Dublin at 44%.

As it marks 20 years in Cork, Davy said there had been a surge in new business in the past year over concerns about inflation. Last year, it said new funds under management in Munster exceeded €500m, an increase of almost one third. A key driver of that new business has been clients seeking to earn a return on short-term money.

"Cork serves as a vital gateway for trade, commerce, and knowledge exchange," Pat Cooney, head of wealth Management at Davy, said. "Nonetheless, wealth management remains relatively untapped as a means for Corkonians to secure their future.

"While Cork’s appetite for investment has grown substantially during our time here, certain legacy weaknesses persist, including an overreliance on property investment, insufficient portfolio diversity, and delayed entry into the investment arena."

CSO, tax and car registration data all suggest Cork possesses about 25-35% as much disposable wealth as Dublin.

However, Davy said client data suggests it has only invested about 12% of the total Dublin has.

On housing, Cork is still slightly underinvested (2%-3%) relative to the rest of the country.

Furthermore, despite being the epicentre of wealth in sSouthern Ireland, Davy said the average fund under management per client for Cork lags about €100,000 behind the Munster average, at about €900,000.

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