As New Rent Rules Kick In, BTR Investment Already Ramping Up
On Sunday, regulation governing Ireland's rented residential sector saw its first major changes for nearly a decade, overhauling former Minister for Housing, Planning and Local Government Simon Coveney's temporary 4% yearly cap on rent rises in Dublin and Cork.
The new rules mean tenancies will be subject to rolling six-year minimum durations with annual rents capped at inflation or 2%, whichever is lower. But landlords will have an option to reset rents to market value at the end of the six years or the start of new tenancies.
For new apartments and student accommodation, rents will only be restricted by the consumer price index.
The new rules come as data from Daft showed supply has hit its lowest level in 20 years. The industry has long called for an end to rent caps to make development viable again, arguing that lack of supply is the fundamental issue in Dublin and Ireland's housing crisis.
And there are early signs that the private rented investment sector is responding, with new acquisitions and deals announced.
Irish Residential Properties REIT, Ireland’s largest provider of private rental accommodation, confirmed that it had entered a forward-purchase agreement with Westar Homes to acquire 77 apartments for €32M in a scheme due to reach practical completion by the end of the year.
Located in Naas, County Kildare, the property comprises a mix of apartment types, including 20 one-bed, 33 two-bed and 24 three-bed apartments. The deal comes after IRES REIT CEO Eddie Byrne told Bisnow that the landlord was targeting a joint venture acquisition in the first half of 2026.
London-based private equity real estate investment firm Valpre Capital, Ireland-based Revelate Capital and a UBS-managed fund also completed the widely anticipated €80M sale of 18 Newmarket Square, Dublin 8, to MEAG, the asset manager of German insurance giant Munich Re.
As reported earlier this year, U.S. residential landlord Greystar has chosen an unconfirmed purchaser for its Quayside Quarter apartment complex in Dublin’s north docklands. Last month, Hamburg, Germany-based investor Quantum Immobilien was identified as the likely buyer at a purchase price of around €180M.
Brookfield also provided a €220M loan for Harrison Street and Eagle Street’s recently completed Marshall Yards build-to-rent scheme in Dublin’s Docklands, which includes more than 550 residential units and around 40K SF of commercial space.
