The Taoiseach has defended the use of international investor funds in the Irish property development market.
It comes after the Government announced that Ireland would again take part in a major international property event in France in March, in a bid to attract investment to support the supply of new homes here.
The Ireland pavilion at Marché International des Professionnels de l’Immoblier (MIPIM) will be used to promote the country as an attractive destination for investment in the residential market.
The MIPIM conference, which will take place in Cannes from 9 to 12 March, is regarded as a key event for international property investors.
The Social Democrats’ spokesperson on Housing Rory Hearne said the Government’s attendance signals no change in housing policy, and it was instead “doubling down” on relying on vulture funds and institutional investors.
The Dublin North-West TD said: “Unfortunately, the type of properties provided under this flawed model mostly results in build-to-rent homes that are completely unaffordable.
“By participating in this international property event in Cannes, the Government shows that its only solution to the housing crisis is to continue bringing in investor funds to buy up Irish homes and turn them into financial assets.”
The Labour Party’s Spokesperson on Housing Conor Sheehan said that while his party recognises the need for investment in housing, international capital “cannot be a substitute for a serious, State-led housing strategy”.
He said any engagement with global investors must be “firmly aligned with the public interest” and “focused on delivering genuinely affordable homes”.
“At the same time, Government has missed its own social housing targets by over 2,000. That failure should be the central focus.
“Instead of over-reliance on private and institutional investment, we in Labour believe the priority must be direct public delivery of homes, stronger regulation of the rental sector, and clear conditions on investment so that housing is treated as a basic necessity, not a financial asset,” the Limerick City TD added.
However the Taoiseach said the industry needed private sector investment if the supply of new housing was to be substantially increased.
Speaking in Wexford at the launch of a development by Wexford County Council of 20 affordable homes, Micheál Martin said: “I believe we do need private sector investment … we have allocated billions from a State perspective but it’s estimated we need about €20bn per annum, to get to 50,000 houses. We can’t do that on State funding alone. So we do need private sector investment.”
He said what it amounts to is investment in Ireland.
“It’s politically and electorally a great line – vulture funds and so on – but actually what we are talking about is inward investment. No one has an issue with inward investment in other parts of the economy.
“Given the scale of what’s ahead of us in terms of the housing we need to build, the apartments we need to build, we need both public sector investment and we need private sector investment, domestic private sector investment and international,” added the Taoiseach.
The Irish delegation will include Government representatives, national agencies, regional authorities as well as figures from the private sector and housing experts.
It is the second year that Ireland has participated in the event, which attracts over 20,000 delegates and €4 trillion in assets under management.
The State-led participation in the event will be overseen by the Department of Housing, Local Government and Heritage, working with the Department of Finance, the Ireland Strategic Investment Fund and the Housing Agency.
The Irish Institutional Property and Property Industry Ireland will be among the private sector representatives.
Minister for Housing James Browne said the event in France presents a very significant opportunity for Ireland to attract private investment to support the supply of new homes across the country.
Minister Browne added that Ireland provides “a stable and attractive venue for investment” in a volatile global environment.
He said investment is “at the heart of our ambitions to deliver the homes needed”.
“That is why we are enabling critical space for private capital to complement the largest ever levels of State investment in our history in infrastructure and housebuilding,” he added.
