No Finance, No Houses
Finance, news and deals of the week
No Finance, No Houses
This week, the big story is about Bank of Ireland and AIB pulling back even further on their appetite for property loans, something developers have been sounding the alarm on for years.
The truth is, the banks have been hesitant to finance property development for quite some time now, which explains why alternative lenders have become more prominent. However, while these lenders are more willing to fund projects, their rates are steep—often starting at 15%, not to mention the extra costs like arrangement and exit fees.
As The Business Post pointed out, developers like Michael O'Flynn of O'Flynn Group have said that securing finance is "extremely challenging" and threatens the viability of housing projects. Both AIB and Bank of Ireland have slashed their development lending since the financial crisis—AIB's dropping from €6.6 billion in 2011 to just €992 million last year, and Bank of Ireland's from €3.7 billion to €540 million over the same period.
For the government to meet its housing targets, it needs to address this funding gap. Zoning more land is not enough—without access to financing, developers can’t move forward. Right now, securing finance for zoned land without planning is nearly impossible, and even the best-capitalized developers are struggling. As Patrick Phelan from Ballymore mentioned, building 60,000 homes a year will require far more debt and equity to flow into the system.
I plan to explore this topic more in future posts, so if you're in the business of providing finance, feel free to reach out to be featured.
What's on the Market: October Edition
1. Ratoath Lands for Industrial Development
Price: €250,000 per acre (€5.3 million total)
Location: Ratoath, Co. Meath
Coonan Property is guiding €250,000 per acre for a 21.2-acre site south of Ratoath, with dual frontage onto Commons Lane and Fairyhouse Road. Zoned E2 under the 2021-2027 Meath County Development Plan, the site is ideal for industrial and employment uses, making it a prime opportunity as Dublin’s industrial land supply dwindles.
2. Dublin 2 Offices with Redevelopment Potential
Price: €13 million
Location: Montague Court, Dublin 2
Montague Court, located near St Stephen’s Green, offers 27,000 sqft of office space across three floors with parking and a mews building. Fully let to government and engineering tenants, it generates €1.25 million in annual rent. With leases expiring in May 2025 and redevelopment potential, this property is a compelling investment in Dublin’s city centre.
3. South Dublin Office Blocks at Discounted Price
Price: €4 million
Location: Trimleston House, Beech Hill Office Campus, Clonskeagh, South Dublin
Knight Frank offers two three-storey office blocks totaling 32,300 sqft with 89 parking spaces in Clonskeagh. Priced attractively for investors, this site offers a cost-effective opportunity for upgrading or converting existing buildings, promoting sustainable development in a sought-after location.
4. Landmark Wellington Quay Building
Price: €950,000
Location: No. 1 Wellington Quay, Dublin 2
This four-storey-over-basement period building at the western edge of Temple Bar offers both commercial and residential prospects. With tenants such as The Music Cafe and a firm of solicitors, the property generates income from its prime location overlooking the Liffey. The vacant top floor presents further potential, either as offices or a unique city-centre apartment.
5. Carrickfergus Residential Development Lands
Price: £7.5 million
Location: Carrickfergus, 1 mile from town centre
This 222-unit residential development site, just outside Carrickfergus, has full planning permission for a retirement housing scheme featuring a mix of homes, tennis courts, and a bowling green. With a recent amendment increasing Phase 1’s density and 36 of the units unrestricted by age, this £7.5 million site offers flexibility and significant development potential.
As always, if you have any off-market land or property available, make sure to reach out. Our main focus is between Belfast and Dublin, with key towns being Newry and Dundalk.
That’s all for this week!
Eamon