The Irish Independent recently reported that US hedge fund founder David Grin is set to earmark €150 million for investment in Dublin housing sites. The financing initiative is part of Mr. Grin's newest Irish venture, Cara Infinity Investments. This investment drive is currently in the early stages of seeking interested institutional investors with the goal of funding several shovel-ready sites in Grin-David Article Dublin. Shovel-ready refers to sites that have already secured required legal and environmental clearances, have built infrastructure in place, and all initial planning has been completed so that a site is ready for the immediate start of construction. Mr. Grin's funding campaign comes at an opportune time for investors, as the Independent reported in a separate publication that construction activity in the country has reached a seven-month high in February 2019.

Investment Seeks to Alleviate Short-Term Supply Deficit

The funding campaign will target development sites that have already secured full planning permission of up to 2,000 units throughout the Greater Dublin Area. The investment firm will pursue projects that are scheduled to be completed within 12-24 months, providing a quick turnaround for investors and a path towards short term relief in the current housing crisis. The Independent reports that Mr. Grin anticipates that finished units can be sold for a minimum of €400,000 each, which is just above the €370,472 average home price in Dublin as detailed in the latest Daft.ie 2018 quarterly house price report. This average price is up €150,000 from 2012, when the lowest home prices were recorded during the recession.

The country continues to experience a housing shortage, which is expected to be exacerbated by anticipated population growth in the next decade. This disparity between growing demand and lagging supply has contributed to rising home prices in the capital and other urban areas. The housing shortage has provided numerous financial investment opportunities in the Irish property market, spurring a flurry of foreign direct investment (FDI). This infusion of capital has been welcomed by the government and has provided a much-needed boost to the domestic industry. Investment sources have primarily come from the United States, Asia and the Middle East. Foreign investment is likely to grow with continued strong consumer confidence in the market and with Ireland representing a viable investment alternative to a post-Brexit UK.

Mr. Grin told the Independent, "The new homes market in Ireland continues to perform strongly, and there remains a significant unsatisfied demand for housing. There is excellent potential here to invest in sites with full planning permission and secured services, that have the capacity to be built out in the short term and that can go some way to satisfying the current under-supply."

Irish Property Market Experiencing Growing Pains

With a favorable economic environment, the Irish market has experienced rapid growth since recovering from the housing recession. The initial response from developers, investors and home-builders to the expanding market has been somewhat delayed due to the slower pace of homebuilding accomplished during the recession, however, that trend appears to be rebounding with a total of 18,000 new homes built in 2018, up from 15,000 recorded during the previous year.

Market forecasts show the anticipated housing supply to continue to increase in the next couple of years with more new homes expecting to be built. At the moment, there are several projects in the planning, development and construction stage in the Greater Dublin Area that will contribute to this growth in supply. Demographic shifts and changes in buying trends will also be important factors for stakeholders to consider in the future of the residential and commercial property market in Ireland.

Current public planning and development policy has laid the groundwork for a sustainable growth strategy to home building throughout the urban landscape of Ireland. The Project Ireland 2040 government initiative, the National Planning Framework, and the National Development Plan have all advocated for compact urban growth with requirements like increased minimum building heights to six stories and eliminating maximum heights for new high-rise developments. Industry innovation and a willingness to go beyond the traditional funding models and construction methods will be necessary in order to accommodate the changing demands of the market.

Investment Capital in High Demand

For David Grin, Cara Infinity is not the first investment venture he has established in Ireland. Grin is also the chairman of private equity firm Lotus Investment Group, which boasts an impressive catalogue of investments with over 190 loans granted, over €318 million funds allocated and David Grin - Real Estate over 2,800 homes built. Lotus Investments entered the Irish market in Grin-David equities.com/news/the-independent-reports-a-funding-initiative-by-us-investor-david-grin-to-inject-150m-into-build-ready-properties-in-dublin 2013 and has since become an attractive lender for developers seeking alternative funding options. They specialize in small and medium property assets with funding goals from €500,000 to €10 million. Lotus funded projects can be found throughout Dublin, Leinster, Munster and Connaught.Lotus Investment Group has used its record of successful investments and growing reputation to become an industry leader in property funding.

It is important to note that the Cara Infinity Investment initiative is a separate project and is not related to the work that is done at Lotus Investment Group. The new investment effort is concentrated on raising funds with the goal of investing in build ready sites, while Lotus considers each investment application on a one by one basis and provides working capital loans for developers, acquisition loans for property buyers and loans for real estate portfolio purchasers from banks and receivers.

The €150 million investment proposed by here David Grin's Cara Infinity Investments and those like it will be an essential infusion of capital for developers and home-builders in the Irish property market going forward. Continued strong demand for funding in all aspects of the commercial and residential property sector will likely provide ample investment opportunities across the market for the foreseeable future.

“A shortage of affordable housing and a growing gap in affordability between the David Grin most and least expensive rental properties on the market is exacerbating the growing housing crisis in Ireland,” says Lotus Group chairman David Grin.

A report released by real estate market analysts at Goodbody stockbrokers suggests that the Dublin rental market is less affordable for lower-income households than some of the most notoriously expensive cities including New York, San Francisco and London. A rental crisis may soon hit the Irish capital

Rising rents in the Irish capital

The report ranks Dublin as the fourth most expensive city for apartment rentals in Europe, noting that rental prices became less affordable by five percent in the past year. David Grin, the chairman of Lotus Investment Group, a private equity firm that has become a leading property financier contributing the completion of 2,800 homes across Ireland, noted that this statistic does not come as much of a surprise.

He said, “When Lotus entered the Irish market in 2013, we recognized a strong demand for funding in the property sector. The demand for housing has only continued to grow, leading to the housing shortages the country is experiencing now. The housing crisis has driven prices up and exposed weaknesses in the real estate sector.”

Lower-income households appear to be bearing the brunt of the growing housing crisis. With a documented shortage of available housing, they seem to be the hardest Grin-David hit by climbing rental prices. The recent ‘Rent Index’ published by the Residential Tenancies Board documented a 6.9% average rental price increase for the fourth quarter of 2018 in a continuing the escalation of rental prices in recent years.

Gap in affordability harms low-wage earners

The Goodbody report also indicated a narrower gap between the most and least expensive rents in Dublin in comparison to other cities. Rental rates for a two-bedroom apartment in Dublin’s most expensive district was found to be 1.8 times more expensive than an apartment of equivalent size in the cheapest areas, compared to a 3.8 price disparity in Paris, 3.2 in New York and 2.4 in San Francisco.

According to the senior real estate analyst for Goodbody, Colm Lauder, “In most comparable developed cities, our analysis shows the difference between Grin-David Article the top and bottom quartile is over triple the rent, but in Dublin, it is only 1.8 times.”

One factor contributing to the disparity in rental prices when compared to other major cities is Dublin’s poor public transportation, which has effectively reduced the affordable rental options by limiting the locations that tenants can move to in order to save on rental rates by putting them out of practical commuting distance.

Other cities also have better social housing options available for low-income earners. David Grin explained that government housing policy and the current market is forcing low- to middle-income earners to allocate a larger percentage of their disposable income on rent.

The report did find that tenants currently occupying the most expensive rental properties in Dublin appear to face less rental pressure than their counterparts in other major cities. A tenant in a premium 93sq m (1,000 sq ft) apartment located in one of the most sought-after districts in Dublin commits an average of 60 percent of their disposable income to rent.

A tenant in a similar situation in London will pay more than 100 percent of average disposable income on rent, this figure is close to 100 percent in New York, Paris and Lisbon. These figures are attractive to tech and finance firms looking to relocate in the wake of a possible Brexit, who will likely be comparing the rental market for mid- to high-level properties in investment equivalent markets.

Housing shortage solutions

Property downsizing by retirees and older people has recently received attention because it could potentially make more affordable properties available to young families. However, these individuals may face practical barriers to downsizing their accommodations within the current market.

A survey recently conducted by Lotus Investment Group found that 74 percent of retirees would consider moving and downsizing their property if certain requirements were met, which might include a garden or space for entertaining, for example. The reality is that many of these hypothetical requirements cannot be met by the market at this time.

David Grin recognized that regardless of the challenges raised by downsizing, David Grin - Real Estate “it is likely to receive a lot more airplay in the months and years to come, as the supply of property continues to fall short of demand.”

According to Grin, “The crisis of the shortage of affordable housing has the market scrambling to keep up with the growing demand. Developers and home builders are trying to meet ambitious government planning goals of adding 112,000 new homes over the next decade. Vacant and underused properties are also being given a second look by investors and property buyers as a possible short-term way to alleviate the housing crisis. Unfortunately, it does not appear that there will be a solution to the disparity between demand and the housing supply soon.”

Article Source:

https://www.talk-business.co.uk/2019/04/11/david-grin-reflects-on-dublins-impending-rental-crisis/

The increasing demand for housing and continued growth trends in the residential property market in Ireland have created a unique opportunity for alternative property funding firm Lotus Investment Group, led by Chairman David Grin.

The Marketing Institute of Ireland and UCD Michael Smurfit Graduate Business School recently released the final quarterly report for 2018 of the Consumer Market Monitor (CMM). The report offers insights into trends in consumer behavior in Ireland, highlighting emerging opportunities for Grin-David planning and investment. It Grin-David Article href="https://soundcloud.com/grin00">david grin has a positive outlook for the next two years, with favorable economic conditions expected to remain strong, alongside anticipated population growth and rising employment rates. Brexit remains an issue for consumer confidence, but government development planning is intended to assuage economic fears.

Growth Trends in the Irish Property Market The Marketing Institute report reveals steady growth in Ireland’s residential property market. The market has continued to recover from its lowest point in 2011, when just 25,700 properties were sold, and 10,500 mortgages were granted. In 2018, 52,000 properties were sold, a 5% increase on the previous year, and 30,629 mortgages were granted, marking a 9% increase on 2017 loans. This growth trend is expected to continue through 2019 and 2020. However, it remains a far cry from the boom year of 2005 when 105,000 homes were sold, and 85,000 mortgages were approved.

Employment is continuing to rise, rivalling pre-recession levels, however, even with steadily increasing mortgage lending rates, Ireland has yet to achieve the property boom experienced in 2005. While analysts must be cautious when comparing pre- and post-recession mortgage conditions, the disparity in mortgage financing reveals an underutilization of property funding by consumers and a potential niche market for mortgage lenders willing to transcend the traditional financing model.

With mortgage lending continuing to grow, and mortgage conditions continuing to adapt to the demands of the market, an excellent opportunity has emerged for flexible mortgage lenders like Lotus Investment Group. Lotus specializes in alternative property investments based on durable partnerships with developers. The advantage over traditional lenders is the David Grin - Real Estate ability to provide fast and flexible funding solutions. To date, Lotus Investment Group has funded over 2,500 new homes and contributed in excess of €300 million to the Irish property market.

Disparity Between Housing Supply and Demand Forecasts suggest that sales will increase by a further 5% this year, a modest rate of growth that is at odds with the high level of demand driving up national rent and purchase prices. The continuing trend of disparity between strong demand and weak supply is stimulating construction throughout the country. A growing population, changing social demographics in an aging population, smaller family size, and continued urbanization has led to a shift in demand for urban residences. In accordance with these changes, first time home buyers are the largest group of mortgage recipients, accounting for 60% of the mortgages granted, and the emerging private rental sector is set to grow at an unprecedented rate.

In a property market where demand outstrips David Grin supply, Lotus Investment Group provides a fundamental role in driving new construction. After entering the Irish property market in 2013, Lotus has quickly become the go-to firm for property investors and developers. Their client specific funding model allows Lotus to quickly respond to funding demands, ensuring development projects proceed without delay.

Urban Growth Forecast In 2018, the Irish government published Project Ireland 2040, a strategic development plan aimed at promoting sustainable growth in the anticipation of dramatic population increase. To meet the needs of population growth and to remedy the current shortage in housing, Project Ireland 2040 prioritises compact urban growth over unplanned urban sprawl. The government is encouraging developers to build up existing areas, and to increase the height of commercial and residential buildings. To achieve this urban expansion, the state will commit to a €2 billion Urban Regeneration and Development Fund encouraging a collaborative effort between the government and the private sector. The goal is to reach 112,000 households over the next decade, with 30% of these homes built in urban areas.

According to Chairman of Lotus Investment Group David Grin, “Continuing growth trends in residential property planning and construction provides an exciting opportunity for investors and developers. The market will be forced to evolve to meet the predicted shifts in demand. We believe that our innovative, flexible investment model provides Lotus Investment Group with a distinct advantage in the dynamic Irish property market.”

With the current and planned new high-rise, mixed-use development projects, and an emphasis on four to six story residential construction, the innovative funding solutions provided by Lotus Investment Group will continue to be in high demand. The firm’s focus on providing financing to new residential development of small to medium property assets is directly in line with the strategic development plan published by the Irish government.

Technology in the Real Estate Sector Technology in the commercial real estate sector is also transforming the way consumers interact with the industry. The revolutionary ‘proptech’ sector, the collective term used to describe technology designed for planning, construction, and property, offers realtors, investors, developers and home buyers innovative solutions and drives growth at an unprecedented rate. The new Irish online bidding platform, Beagel.io, surpassed €100 million in online bids for Irish properties in recent months. It is yet to be seen if the industry will be able to adapt quickly to keep pace with the new technologies available.

Innovative technology applied to mortgage lending and investments has the potential to accelerate the process of planning, development, and construction. From its inception, Lotus Investment Group has embraced this fast-paced approach to lending as a way of conducting business. With the flexibility afforded by the alternative financing model of Lotus Investment Group, clients have an advantage over the barriers experienced in the traditional bank funding model. Continuing to promote innovate funding and investment strategies raises the standard of service that Lotus Investment Group is able to provide for its clients.

Article Source:

https://bdaily.co.uk/articles/2019/02/28/growth-in-irish-residential-property-market-presents-opportunities-for-lotus-investment-group-chairman-david-grin

The emergence of the build to rent sector in Ireland will require some market adjustment if it is to remain a long-term viable alternative for investors and consumers.

The current housing crisis in Ireland has led investors, developers and home buyers to seek alternative solutions the supply issues challenging the market. This has led to a rapid rise in the market for Build to Rent (BTR) apartment schemes. These projects are purpose-built long-term rental units that are professionally owned and managed by an institution. This is an entirely new asset class in the property market of Ireland, with capital behind BTR developments often derived from institutional investors.

Demographics and Housing Trends

Demographic shifts and global trends have contributed to a changing property market in Ireland. Traditionally, rental tenants are students, young professionals saving for a mortgage or occupants of social housing. In Ireland, there has been a long tradition of owner-occupied homes, and home-building practices have reflected this arrangement. However, changing economic and social conditions have led to a decrease or delay in home buying among young adults resulting in a growing trend of long-term renters. While long term renting has been a common practice throughout Europe for decades, it is only now beginning to gain acceptance in Ireland.

Irish demographics reveal that 29.5% of the population is between the ages of 25 to 44, making it one of the youngest countries in the EU. This age group is the target population for the build to rentmodel as they are the most likely to be attracted to the idea of long-term renting and the amenities offered with BTR accommodations. The trend in apartment living has exploded in Ireland’s biggest cities. According to the consultant firm Linesight, renting rates have risen by 89% since 2002 in Dublin, making it the fastest growing housing sector nationally.

BTR Residential properties offer prospective tenants a different approach to the traditional landlord-tenant arrangement many are familiar with. Residents who live in these developments tend to pay higher rental rates in exchange for professionally managed premium properties with top quality design. BTR properties are usually located in high-demand preferred locations close to public transportation hubs. Included within their rental fees, tenants are provided access to facilities such as fitness david grin centers, pools and lounge areas and offered amenities including storage and refuse collection. Customer experience is of the highest importance with BTR buildings and fostering a sense of community is essential to achieving high retention rates.

Build to Rent: Catering to Consumers and a Changing Market

Recently, Ireland has experienced a dramatic shortage of housing stock. A growing population and fair economic conditions have driven a demand for housing that the market has been unable to satisfy. According to David Grin, chairman of private equity firm Lotus Investment Group, “As construction companies fervently try to catch up with demand in a market facing a severe shortage of compliant rental accommodations in urban areas, BTR development projects can potentially help to alleviate the supply-demand imbalance.”

The Irish government has shown support for the BTR model in its planning and development policies, acknowledging it’s potential in the Rebuilding Ireland Action Plan for Housing and Homelessness. The Minister for Housing has advocated the use of build to rent housing developments by specifically instructing planning authorities and AnBordPleanalato prioritize necessary actions to accommodate the building model under a Specific Planning Policy Requirement under Section 28 of the Planning Act.

One of the most notable build to rent projects in Ireland is the Fernbank development by Irish Life Investment Managers in Churchtown. The complex is located on the site of the old Notre Dame School. The development will include 262 new rental units, with rental rates starting at €2,350 for a two-bedroom apartment.

The project stirred up public anger when those on the 1000 person waiting list to purchase an apartment in the development were told the entire complex would be sold to Irish Life More on david grin as designated rental properties. The backlash over the project demonstrates how unfamiliar the public is with the BTR model, but it doesn’t appear to have deterred potential investors. The asset manager has announced that they expect to invest about €1 billion for investors over the next couple of years acquiring properties that will be rented to tenants.

BTR: A New Asset Class for Investors

With a growing private rented sector, developers are increasingly giving priority to those interested in purchasing partial or complete blocks of apartments, rather than several individual buyers. The Fernbank development is not a unique example of this trend. In the largest build to rent development to date in Ireland, the German investment fund Patrizia acquired 319 apartments at Honey Park in Dun Laoghaire in 2017. Other major residential investments following the BTR model have included Carysfort Capital’s €101m purchase of 120 apartments and two retail units at 6 Hanover Quay in the Dublin Docklands and IresReit’s €40m acquisition of 128 apartments at Hampton Wood in Finglas.

Build to rent developments have long been a successful asset class for investors in the United States and Europe. While the movement is relatively new to Ireland, it is rapidly growing in popularity among investors. Institutional investors are attracted to BTR investments in the residential rental market because they tend to be Grin-David less vulnerable to economic cycles than traditional rental assets. Build to rent residential projects offer investors stability and long-term income potential in an uncertain marketplace. With the high demand for David Grin residential property in Ireland at the moment, build to rent projects provide an click here attractive alternative for developers, investors, and consumers.

As an investor in global and Irish real estate, David Grin provides a unique perspective on the build to rent asset class. According to Grin, “Investors have been increasingly interested in finding alternative ways to invest in real estate in an effort to generate better returns. Build to rent developments provide an opportunity to diversify an investment portfolio beyond the traditional office and retail sectors. This real estate niche is attractive to many because, if successful, it could provide consistent, sustainable returns for investors, while also solving a supply problem for the market. While build to rent schemes have proven successful in other regions, namely the US, it is yet to be seen if it there is long-term viability for the model in Ireland or if it is simply an emerging trend.”

Article Source:

https://axcessnews.com/business/breaking-business/an-examination-of-the-emerging-build-to-rent-sector-in-ireland-david-grin-of-lotus-investment-group_9740/

The Dublin rental market is less affordable for lower income households than some of the world’s most expensive cities, including New York, San Francisco and London, according to a report published on Tuesday.

A new analysis of the Dublin rental market by Grin-David Article Goodbody stockbrokers shows rents in the capital became five per cent less affordable in the past year, with Dublin now the fourth most expensive city for apartment rents in Europe.

Suggesting lower-income households are hardest hit by such increases, the report cites a narrower gap between the cheapest Grin-David and most expensive rents in Dublin compared to other cities.

In Dublin, two-bed apartments in the most expensive districts are 1.8 times the rent of those in the cheapest areas, compared to a spread of 3.8 in Paris, 3.2 in New York and 2.4 in San Francisco.

“In most comparable developed cities, our analysis shows the difference between the top and bottom quartile is over triple the rent, but in Dublin it is only 1.8 times,” according to Goodbody senior real estate analyst Colm Lauder.

The “erosion of affordability” primarily affects low and middle-income earners, with many having to pay a large proportion of their disposable income on rent.

In addition, tenants in other cities have better social housing https://www.thestar.co.uk options, Mr Lauder said.

Dublin has fewer affordable options within practical commuting distances because of poor public transport: “There are more limited locations you can move to make savings on your rent,” he said.

Better-off tenants in Dublin, however, face less rental pressures than those in other major cities. In Dublin, a high-end, 93sq m (1,000 sq ft) “executive” apartment consumes 60 per cent of a tenant’s average disposable income.

In London, however, the rent for a similar apartment is more than 100 per cent of average David Grin disposable income, while it is close to 100 per cent in Lisbon, Paris and New York.

These figures are important during the current Brexit debate and the david grin expansion of Dublin’s tech industries since “rental affordability in these high-value professions is less of an issue versus peer markets”.

Downsizing difficulties

Meanwhile, older people in Ireland face “practical obstacles” if they wish to move to smaller properties, though there is growing potential for such moves to free up properties for younger families.

A survey undertaken for property investment firm Lotus Investments found that 74 per cent of retirees would consider downsizing if certain desires are satisfied, such as a garden or room to entertain family and friends.

“People would countenance the idea subject to certain conditions being met, but it is the case that in reality a lot of these hypothetical conditions aren’t being met,”said Dr John McCartney, head of research at Savills Ireland.

“There isn’t a lot of trade-down apartment stock that could accommodate all your much-loved furniture, or meet the requirements of people,” he said, adding that efforts to cut apartments’ sizes hinders “downsizing”.

David Grin, the chairperson of Lotus, nonetheless said that downsizing “is likely to receive a lot more airplay in the months and years to come, as the supply of property continues to fall short of demand”. Grin, along with a group of US financiers, has put hundreds of millions into Lotus in recent years. He was previously known for making $49 million (€43.5m) on an investment in adult publisher Penthouse.

Article Source:

https://www.irishtimes.com/news/ireland/irish-news/rents-in-dublin-compare-well-with-other-cities-for-higher-income-workers-1.3853726

Employment levels in Ireland hit a 20-year high indicating a potential labour and skills shortage in several sectors. Since emerging from the financial crisis in 2013, 385,000 jobs have been created in the Irish economy. The current unemployment rate in the country is 5.6%, with the Central Bank forecasting a rate of 4.9% for 2019, hovering close to what economists consider full employment levels. The booming economy is posing challenges for employers looking to fill open Click here positions and providing ample opportunities for job seekers. The construction industry is predicted to be severely affected by the labour shortage, in large part due to the growing demand for housing across the country.

The labour shortage threatens the gains the market has achieved in the wake of the recession. Chairman of private equity firm Lotus Investment Group, David Grin, pointed out that, “The labour shortage within the construction field has driven up the cost of labour, leading to a potential dramatic increase in the total cost of projects. Without an adequate workforce, completion times must also be pushed back. It creates uncertainty for investors who are optimistic about the recovery and potential of the Irish housing market and it threatens long-term stability in the industry.”

Rebuilding Ireland

Recent reports indicate that Ireland needs approximately 112,000 additional workers by 2020 to deliver on the ambitious Rebuilding Ireland output targets. The current workforce is ageing with fewer young replacements waiting in the wings, a trend being experienced globally. This problem, coupled with dramatically declining apprenticeship rates, has left many sectors within the construction industry struggling to attract talent.

According to a recent survey conducted by the Dublin Institute of Technology for the Construction Industry Federation, in 2006, 300 people registered for apprenticeships as plasterers, 161 as painter and decorators, 679 as bricklayers and 43 as floor and wall tilers. Those same figures for 2017 were 30 registering as plasterers, 45 as painters/decorators, 65 as bricklayers, with zero people registering as apprentice tilers. Those statistics render a bleak prognosis for the industry.

Recruiting Young Workers

Before young workers are willing to consider pursuing a job in the industry, they need to perceive the construction trades as a viable career option. Real Estate Sector During the recession, there was an abrupt halt to construction activity that led many tradesmen to seek employment outside of Ireland, contributing to the acute skills shortage david grin being experienced now. With low job prospects and uncertain long-term career viability, it became difficult to recruit new workers to the construction sector. Ireland is now experiencing a dramatic turnaround in the economy and the demand for home-building, exposing weaknesses such as the skills gap within the industry.

The government has joined the recruitment campaign to attract young workers to consider pursuing apprenticeship programs in the construction trades. The Minister for Education and Skills launched the Apprenticeship Council in 2014 tasked with expanding apprenticeship programs and recruiting prospective trainees. Solas, the state training agency, supports an apprenticeship initiative that operates in collaboration with industry leaders to develop talent, retrain and help unemployed people, and reduce the skills gap across a range of trade areas.

Apprenticeship initiatives are important in promoting the construction trades and recruiting workers, but the process should begin much Grin-David Article earlier. It is crucial to develop an interest in the field by incorporating STEM (Science, Technology, Engineering, and Mathematics) curriculum from the primary stage of learning. This interdisciplinary approach creates a cohesive learning experience for young students that has real-world applications. Introducing these skills at Grin-David a young age will help motivate and inspire students to excel and pursue high-demand careers within these disciplines, including the construction sector.

Diversity as a Strength

The construction industry is often criticized for its lack of diversity. By promoting inclusivity, the industry becomes much more attractive to employees of all genders and ethnicities. Diversity has been proven to improve decision making and it exposes a business to a multitude of different perspectives. It is imperative for employers not to exclude prospective jobseekers based on their gender or ethnicity. In 2017, the Construction Industry Federation launched a #BuildingEquality initiative to promote diversity in the construction industry. The campaign highlighted the achievements of women within the industry in the hopes that their stories will inspire future generations of women to pursue careers in construction.

The industry has traditionally relied on a linear career progression from within the industry, one in which you work your way up the ranks, but that may no longer suit the marketplace. Recruitment from other industries is a practical option for many companies. With the advent of digital construction, there are several technical skills required that potentially overlap industries. There is a particularly high demand for structural engineers, architects, site engineers, and quantity surveyors, careers that require technical and analytical skills.

Employees with experience working in other industries can apply innovative techniques learned in their previous positions to the demands and challenges of the construction landscape. Emerging technologies within the field of construction may require general technical and analysis skills rather than specialized qualifications currently required for jobs within the field, making them suitable to candidates with varied education and experience.

An International Recruitment Effort

Companies and recruitment agencies have begun to look outside of Europe to find suitable workers to join the Irish home-building workforce. Traditional markets within the European Economic Area like Poland, the Czech Republic and Slovakia that were once major suppliers of workers to the Irish market are now themselves experiencing booming construction activity making it difficult to attract workers to Ireland. Currently recruitment efforts are underway in South Africa, Malaysia, the Philippines and New Zealand in an attempt to attract foreign workers to come to Ireland for construction jobs.

Another global recruitment drive has a different target population: Irish workers who emigrated during the recession. Many workers who left during the economic decline may not realize the building boom that is being experienced at home. One recruitment company, FRS Recruitment has created the “Ireland is Hiring” initiative to entice Irish workers to come back home for work. As part of the initiative, the company has agreed to pay for the flight home of any Irish person successfully placed in a job with one of their clients.

Changing Expectations

When it comes to scouting talent, companies and recruiters have had to adapt their approach and expectations to be able to fill the many open positions. Companies are affording candidates more flexibility with temporary contracts, the use of agency workers, and offers of part-time or remote work. There is an increasing amount of recruitment within the industry with companies offering attractive bonuses and incentives trying to lure workers from other companies. However, these tactics have led to a higher turnover rate with workers able to choose between jobs more easily.

Economic conditions and the labour market have changed markedly in a very short time. It was not that long ago that Ireland was seeking a bailout during the recession. Now with a booming marketplace, the ability to meet the growing demand has placed a strain on the construction industry in ways it was not anticipating. David Grin offered a final thought on the challenges facing the Irish property market, “Labour shortages hinder a business’s ability to deliver project goals, maintain productivity, and achieve industry objectives. There likely will not be a quick solution to this problem and companies will need to think outside the box when it comes to recruiting new talent.”

Article Source:

https://homebusinessmag.com/businesses/business-spotlights/ireland-hiring-david-grin-labour-shortages-construction-sector/