Dublin Clouds London’s Tech Property Dominance
Dublin is hot on the heels of London for the title of Europe’s ‘Silicon Valley’, according to ‘Media & Technology iQ’ a new report launched today by Colliers International, global real estate advisors.
As the economy rebounds, Dublin is set to consolidate its top three position in Europe through exposure to large tech players and the data centre industry, and Ireland is now the fastest growing country in Europe for data centre operators.
The IT sector represented 30 per cent of office take up in 2013 and US tech giants alone invested over $130 billion into Ireland between 2008 and 2012, almost as much as they invested in all of developing Asia.
In London, over 46 per cent of 2013 leases in the West End were attributed to tech and media companies – and ‘Tech City’ continues establish its dominance. However, if London is going to remain at the top, landlords and developers have been urged to urgently address the shortage of central, quality stock and increase provision of flexible and innovative space. With Dublin, Berlin and the Nordics are offering businesses young and fresh talent, and surplus office space in abundance, Media & Technology iQ’ has called on London to address the increasing skill shortage in the UK to maintain its crown.
Paul Finucane, Director of Offices at Colliers International said: “Dublin is offering businesses young and fresh talent in abundance, and has also proved its ability to attract talent from abroad – 55% of the positions in the information and communications sectors came from abroad to work in Dublin. Ireland’s favourable tax system, with a corporation tax set at 12.5%, has also undoubtedly reinforced the appeal of the city as an ideal business location. Over time, Dublin has managed to establish itself as a location for multinationals, so the infrastructure is in place for new companies to base themselves here.”
Modern office buildings on Dublin’s “Silicon Dock”, which houses a large concentration of Dublin’s media and tech operators, are offered at rents averaging €350 per sq m per annum, but this threshold is expected to increase to €400 per sq m per annum during the course of 2014. In Dublin’s suburbs office accommodation can be secured on average for between €150 to €190 per sq m per annum.
Bruno Berretta, Senior Research Analyst and author of Colliers International’s Media and Technology iQ, said, “The media and technology sector is now the most important and active business sector and one of the key economic drivers in a number of European markets. The tech landscape has developed significantly over the past few years. Not only are ‘rising stars’ like Berlin and Dublin claiming considerable market share from London, but also ambitious Nordic cities like Stockholm and Helsinki and Central Eastern markets in Poland, Slovakia and Hungary are emerging as strong regional hubs.”