Half year accounts from IRES Reit, which has purchased nearly 1,600 apartments in the Greater Dublin Area over the past 18 months, show just how lucrative the institutional landlord business is in Ireland

Pre-tax profits for the six months to June soared to €14.8m – up from just under €6m at the same stage last year.

IRES says that the rents on its apartments rose by between 10 percent and 15 percent during the six month period and that they are now enjoying nearly 100 percent occupancy rates.

The firm says that it has the capacity to borrow close to €400m to buy more apartments, and could enter joint-venture arrangements with builders to construct up to 650 additional apartments on sites it already owns.

It also comments that there are still further acquisition possibilities, both through NAMA and private off market sales.

David Ehrlich, the Company’s Chief Executive Officer commented on the results: "Given current planning guidelines and the expense of new construction, the costs of building housing makes it difficult for the severe shortage of accommodation to be rectified over the next several years at least. This will benefit the Company in two ways."

These being, first, the potential for a strong general performance from the company in the coming years - and the second being opportunities to enter into agreements with builders to develop new properties on its sites.