Dublin rent and multi nationals

allibastor

All, quick question, more brought up by chats over chritmas.

A good few people i know work in Dublin for bin Multi nationals and every one has said good priced housing is a huge issue. All guys earning 50k and well above.

Got me thinking why do big companies set up there, even stripe set up by limerick bros keep setting up where housing doesnt exist.
It just means wages now need to be high in all jobs to afford to live there. It looks like the only people who will live in Dublin soon will be from big companies with working class needing to move out

MayoSalmon

Because senior management and foreign employees have no desire to live in Mullingar

Taco Chips

They want to set up where the infrastructure is good i.e, access to high speed broadband, airports, train stations, good vibrant city life, finance etc... The situation with excessive rent cost and shortage of accommodation in Dublin is becoming damaging and the end result is not that companies are going to relocate to Mullingar/Dundalk/Drogheda etc... It's that they're going to skip Ireland entirely.

ongarite

Successful companies want to be located near other successful companies and startups want to be around these companies too.
It encourages the type of employee they are looking for to move/relocate to there and the free movement of talent pool and ideas from company to company.
In Ireland's case this is in Dublin..

You could say the same about San Francisco or San Jose. Why would any company relocate there or startup look be there?
It has extremely high rents both commercial and residential, multiples of what we think is expensive plus the traffic is way way worse than Dublin.
But its where the ideas are born and all the talent is.

newacc2015

allibastor wrote: »

All, quick question, more brought up by chats over chritmas.

A good few people i know work in Dublin for bin Multi nationals and every one has said good priced housing is a huge issue. All guys earning 50k and well above.

Got me thinking why do big companies set up there, even stripe set up by limerick bros keep setting up where housing doesnt exist.
It just means wages now need to be high in all jobs to afford to live there. It looks like the only people who will live in Dublin soon will be from big companies with working class needing to move out

Even though €1000 upwards for a 1 bed apartment seem insane money for people. It is still cheaper than London, Milan, Munich or Paris. These realistically are the cities Dublin is competing with to attract firms. Google who has offices in SF and NYC arent going to located their European HQ in Letterkenny.

Clustering is a major decider on where firms locate. If one major firm open in an area. Other firms open there to take advantage of economies of scale such as existing talent, good existing service. If an Asian bank wants to set up a UK branch. They will choose London City, as all the other banks are there.Even if they can get cheaper offices and staff in Leeds, they will still prefer to locate in London City

The demographics of their workers is a major factor. Most people working for the likes of Google and Facebook are young. They want to live in a city. I heard from someone working in Google Ireland. That roughly a third of their workforce is LGBT. They probably arent willing to live in small city, even if it is cheaper. Dublin is a very acceptable and diverse city, that makes it attractive to live in.

gaius c

The answer is 12.5%, the corporate tax rate that with a little bit of clever accounting can be reduced lower.

The employees get to hold onto their ankles and grit their teeth.

It will continue until enough companies complain that they are having difficulty hiring people not willing to pay half their post-tax income in rent. The pharma companies are struggling in this regard because they can't increase salaries without making themselves uncompetitive globally.

imitation

I think tax here is more favorable than England and we are the only irish as a primary language country in the euro. Dublins the capital so its going to have the best infrastructure.

You are right though Dublin has a lot of issues compared to other large cities, serious lack of mass transit, lots of low density housing which in turn contributes to a lot of traffic. I think the only way around it is if Irish people can start adapting to apartment life in Dublin.

syklops

imitation wrote: »

You are right though Dublin has a lot of issues compared to other large cities, serious lack of mass transit, lots of low density housing which in turn contributes to a lot of traffic. I think the only way around it is if Irish people can start adapting to apartment life in Dublin.

I've lived in apartments abroad and in Ireland and I can tell you its not that Irish people need to adapt to apartment living, its that developers need to start building apartments that can sustain an Irish persons life style.

So many are tiny little shoe boxes with no storage at all, often located miles away from public transport, or miles away from local amenities. Most of the Irish ones Ive seen or lived in, had no room for a kitchen table but had a breakfast bench instead.

syklops

MayoSalmon wrote: »

Because senior management and foreign employees have no desire to live in Mullingar

LMAO!

I used to work for a research institute that had set up in Westmeath because the IDA gave them more money funding for setting up in Westmeatht han they would have for setting up in Dublin. A guy from the US came over for 6 months to set up the office and hire researchers, and when I joined the team the wifi password, and the password for all the servers(which the guy from the US had set) was Why-Mullingar?!?

athtrasna

Mod note

Please stick to the accommodation and property issues, thanks.

Mrs OBumble

imitation wrote: »

and we are the only irish as a primary language country in the euro.

I'm not sure that the Irish language is a big draw-card for many multinationals.

But we are the only English as a primary language country in Europe that's not England: some Americans ain't so fond of their former colonial masters, and this is of benefit to Ireland.

JackHeuston

allibastor wrote: »

All guys earning 50k and well above.

With that salary it's not absolutely impossible though. They should be pretty comfortable with 50k and all around that amount.

If they want a modern apartment in the city centre... that could be a bit of a struggle.

I earn 10k+ less than that amount and when I wanted to find a place all for myself as I was tired of sharing I simply moved 10km away from work and I just accepted I had to commute.

I guess it's only a matter of how much time you're willing to waste going from home to work and return. If one wants to live at walking distance from their top job in the city center, well... I guess you gotta pay extra for that.

I'd love things were easier, but it's still very doable with these kind of salaries. There are people struggling way more than that.

Villa05

allibastor wrote:

Got me thinking why do big companies set up there, even stripe set up by limerick bros keep setting up where housing doesnt exist. It just means wages now need to be high in all jobs to afford to live there. It looks like the only people who will live in Dublin soon will be from big companies with working class needing to move out

Northern trust wanted to move from Ireland, but we're convinced to move to limerick. Announced significant expansion last year

First Data initially were looking at Dublin but announced a move to Nenagh yesterday with 300 jobs

Per capita Limerick and Waterford benifited significantly from Ida sponsored jobs in 2015.

ongarite wrote:

You could say the same about San Francisco or San Jose. Why would any company relocate there or startup look be there? It has extremely high rents both commercial and residential, multiples of what we think is expensive plus the traffic is way way worse than Dublin. But its where the ideas are born and all the talent is.

How many irish multinationals were born in Dublin. Our most successful multinationals were born in rural ireland.