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 planning and investment. It has a positive outlook David Grin More on david grin for the next two years, e-architect.co.uk/articles/david-grin-reviews-new-legislation-designed-to-strengthen-tenant-rights-and-protections with favorable economic conditions expected fund 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 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. david grin 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 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 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 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 David Grin a separate publication that construction activity in the country has reached a seven-month high in February Click for info 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 david grin 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 More on david grin 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 over 2,800 homes built. Lotus Investments entered the Irish market in 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 Grin-David 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 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.

Article Source:

https://www.equities.com/news/the-independent-reports-a-funding-initiative-by-us-investor-david-grin-to-inject-150m-into-build-ready-properties-in-dublin