Rent cap locks billions of euros out of Irish housing, property broker CBRE says

The rental controls are a hindrance that only compounds increased capital and construction costs for investors, lobbyists for the industry have pointed out

The rental controls, initially ushered in at 4% per annum in 2016 and amended to 2% in 2021, are a hindrance that only compounds increased capital and construction costs for investors, lobbyists for the industry have pointed out. 

Rent controls are deterring overseas investors in the Irish residential real estate market and keeping out billions of euros, according to a study by CBRE.

Only one forward structured residential transaction — in which an investor agrees to buy a development early or mid-construction stage — has been reported since the start of 2023, the property broker’s research arm said in a report on Wednesday.