The Irish investment market could benefit from the UK’s impending withdrawal from the European Union.
Brexit will make Ireland the only native English-speaking member of the EU and its more beneficial corporate tax rate could attract international capital.
John Moran, chief executive of JLL Ireland, said: “We are starting to see quite a significant upsurge of German and French funds. Even in the 48 business hours after the result of the vote, enquiries rose significantly.”
Despite these enquiries, a decline is expected in Ireland’s growth rate and its stock exchange was the worst-performing in Europe on Monday, falling by 10% because of its reliance on trade with the UK.
Marie Hunt, head of research at CBRE Ireland, said the unexpected vote could dent investor confidence and delay transactions, but she added that even before Brexit concerns, total capital returns were forecast to be lower in 2016. Volumes are expected to be €3bn (£2.5bn) this year – down by one quarter on 2015, when deleveraging by Nama was at its highest.
Hunt said: “Some investors may put their decision on hold, but others may see it as an opportunity. There was huge opportunity after the crash. That has rebounded to buying into a core market as opposed to an opportunistic market.”
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