Vulture funds circle city property market

The country’s largest vulture fund circling the Galway housing market was bad news for renters and buyers looking to get on the property ladder.

That’s what Galway West TD, Mairéad Farrell, told the Dáil this week, amid plans by investment firms to back build-to-rent apartments in the city which she said would fuel further increases in rents and sale prices for homes in Galway.

Rents in Galway City have increased by 8.3% in the past year, and County rents rocketed by 19%, according to the latest Daft.ie report.

Analysis by Daft.ie showed average rents in the city were now almost €1,500 and the average was €1,114 in county areas.

Deputy Farrell, Sinn Féin spokesperson for Public Expenditure and Reform said the plans by IRES Reit, the country’s largest vulture fund, to roll out its highly profitable ‘buy-to-rent’ model of apartments in Galway spells bad news for people living here.

The buy-to-rent model works to maintain high rents, even if that means the properties are not rented-out.

“We often hear from this government is that it’s all about ‘supply, supply, supply’. That so long as we are increasing the supply of homes, by whatever means, then we can bring down rents. Sadly often these funds are often happy to let their properties sit idle if they cannot get someone to pay that rent.

For more, read this week’s Connacht Tribune.

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