Rental market facing further pressure over potential EU agency relocations

Ireland is in the running to home a number of large scale EU agencies following Brexit

Rental market facing further pressure over potential EU agency relocations

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Ireland's beleaguered tenants could be facing further rent hikes as European and British businesses consider relocating to the country following Brexit.

A number of major European agencies are considering relocating to Dublin following Brexit with the European Medicines Agency (EMA) and the European Banking Authority (EBA) the latest to be linked.

While the capital could be in line for an influx of jobs from the potential relocations; real estate agency Savills has warned that the influx of high earning employees could put significant pressure on the rental market.

It is believed the EMA alone will bring 900 staff to Dublin should it relocate to the city.

John McCartney, director of research at Savills said the new arrivals are certain to have a knock on effect.

"The reality is that they might out-compete some of the incumbents and find that there is no problem, they can get rental accommodation in Dublin; they can afford to pay for it because they are in well-paid jobs," he said.

"I think the bigger problem is, who is going to be displaced?

"If you can't afford to compete with these people coming in, where do you go?"

He said it will take at least four or five years of development before housing numbers reach an adequate level in Ireland - adding that the shortage could affect the country's ability to attract European business.

"If you look on for example today, as we speak, there are currently fewer than 1100 housing units available to rent in Dublin," he said.

"So, in terms of the available stock, again just making the very crude assumption that they all come over together, at the same time, that would make a huge dent in the available stock."

The EMA is responsible for the scientific evaluation, supervision and safety monitoring of medicines in the EU.

The EBA meanwhile, works to ensure effective and consistent regulation and supervision across the European banking sector.

The 27 member states will vote on the future locations of both agencies in November this year.