Concern has been raised about the Irish construction industry’s over-reliance on foreign funding with new figures showing overseas investors accounted for nearly three-quarters of the €2.4 billion invested in the private rented sector (PRS) here last year.
The figures from estate agents Savills indicated just €630 million came from Irish sources. The influx of foreign funds, availing of strong returns from the rental sector, has been a feature of the sector here since the crash.
Property developer Rick Larkin said that while foreign capital is important, the industry’s over-reliance on this source of funding leaves it exposed.
“Foreign capital is a good thing but it’s not enough on its own and it leaves us exposed in the event that it shuts off,” he said.
“If those guys – because of some other economic force – decide not to invest here, there will be capital flight,” he said. This will stop
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