Dublin_ a hot european real estate market, but few products for investors – ishares msci ireland capped etf (nysearca_eirl) _ seeking alpha

Celtic Tiger – the colloquial term for Ireland’s economic boom in the late 1990s and the subsequent property-price inflation of the early 2000s. Msci world history Since Ireland joined the European Union in 1973, the Irish economy has grown and thrived through extreme leveraging of capital, partly due to the weak Irish regulatory supervision of the financial sector. Msci world index weights In 1994, a wave of foreign direct investment from multinational corporations resulted in considerable improvements to Ireland’s labor force, education standards, wage levels and the economy overall.


Msci world index historical prices With the introduction of the Euro in 1999, European Central Bank Interest rates were lower than Ireland’s national interest rates prior to the single currency, encouraging future homeowners to borrow in great amounts. Msci europe index ticker Property values skyrocketed along with private sector debt (as a result of the need to borrow more) for the next decade. Msci index ticker Ireland’s fiscal position in 2008-09 debased as a result of growth in net exports and export-oriented technology exacerbated by the transaction based tax revenue spike during the property bubble. Msci world local currency These circumstances fueled unsustainable levels of government expenditures – levels as high as 66.1% of GNP – resulting in a recession.

Property markets are bouncing back rapidly however. Db x trackers msci world index ucit Commercial real estate values were up 30.7 percent YoY in 2014, though they still remain about 30 percent below pre-boom levels. Barra msci This is also evident in the residential property space (see graph below). Msci indice Residential property values have increased 28% since Q1-2013, but remain 38% lower than in the 2007 housing peak. What is the msci eafe index In Ireland, the housing index refers to the Residential Property Price Index (RPPI) and measures the change in prices paid for houses sold. Msci world dividend yield Quarterly housing permit figures are at a very conservative level (between 800-1000 per month) – a significant (but necessary) drop from the Q2-2004 high of 7,563 permits.

The Emerging Trends in Real Estate® Europe 2015 reported Dublin as the 2nd most attractive city for real estate investment – Berlin ranked first and London dropping 5 places to number 10. Msci world quality index etf In 2014, Dublin attracted the sixth highest level of real estate investment amongst the European 28 cities reviewed in the report. Msci world index fact sheet Strong rental growth based on low supply, employment growth and an improving economy are a few of the factors, which caused this improved 2015 ranking. Msci emerging markets index etf Ireland’s unemployment rate (graph above) is now just below 10.5% since it peaked at 15% in Q1-2012. Msci index announcements Ireland’s labor force reacts more strongly than other European countries to coincident changes in GDP.

It has responded well to the growth in Foreign Direct Investment over the last 3 years. Msci index definition The level of foreign direct investment (FDI) into Ireland rose by €28 billion in 2013 to €287 billion, according to new Central Statistics Office figures. Ishares msci world index The United States accounted for €8 billion, €11 billion from Europe, and €4 billion from Central American offshore countries. Msci world usd The United States is the principal source of FDI for Ireland, which has invested over 165 billion USD (more than the combined investment in BRIC nations). Www msci com The FDI Intelligence Report for 2014 reported that Ireland was the only country within the European top 10 to record a growth in FDI project numbers.

• “The 12.5% tax rate never has been and never will be up for discussion. Msci emerging markets index country weights The 12.5% tax rate is settled policy. Msci world index ytd It will not change.” – Minister of Finance in Budget 2015 Speech.

In February 2015, Apple (NASDAQ: AAPL) announced plans to invest €850 million in the development of a new data center in Galway to help run its online services like iTunes and Maps. Msci world quality etf This is part of a €1.7 billion global investment. Msci world net returns Facebook (NASDAQ: FB), Ericsson (NASDAQ: ERIC), Microsoft (NASDAQ: MSFT), and Google (NASDAQ: GOOG) (NASDAQ: GOOGL) have already done this same (globally) in recent years. Msci it This new data center will create 300 jobs during each phase, from construction to operation, and another 100 jobs once fully operational.

“Ireland and Spain continued to lead the charge, backed up by a fast-improving German economy,” says Markit. Msci index methodology Ireland is on a very straight road to recovery with restoring stability to the banking system, regaining market access for the government and restarting economic recovery as their top priorities. World msci index In addition, a weaker Euro and lower oil prices have already boosted European Manufacturing PMIs, which lends a positive outlook and confidence in a stronger equities market. Db x trackers msci emerging markets index ucits etf SA News Editor, Yigal Grayeff, highlighted business activity and confidence is growing [as reported by Markit] with a 9-point increase in Manufacturing PMI and a 12-point increase in Services PMI since 2012.