Roof-top terraces, dog-washing stations and outdoor kitchens are likely to be an increasing feature of build-to-rent (BTR) developments across Dublin as investors seek to attract and retain tenants, as well as earn premium rents.
A new report from BuildingLink Ireland, which provides building management services for the BTR market, draws comparisons between Dublin and Boston in the US, where apartment owners and managers have ramped up the use of common area amenities to “differentiate their offerings, gain and retain residents in a variety of demographic groups”.
At present most BTR or private rented sector (PRS) developments in Dublin feature resident lounges, concierges and fitness centres, but further differentiation is likely in the future, says the report.
In Boston’s more mature multi-family market, for example, the report finds that amenities feature more heavily than in comparison to Dublin.
“So apartment building managers should consider investing in these with events and activities programmes with pro-active management if they intend to remain competitive,” the report says, noting that asset-owners and managers have used amenities to attract, retain and receive “premiums” over the base rent.
As a result the authors of the report expect “amenity wars” to break out in the Dublin PRS market and further differentiate the offering of individual properties.
Transactions
Amid a continuing shortage in housing, investment in the BTR sector remains buoyant in Dublin. Figures from Hooke & MacDonald show that around €1.5 billion was spent across 19 major BTR transactions in the first six months of this year, with thousands of apartments currently being developed in the sector across the city. Developments include Roselawn, a development of 142 BTR apartments along the N11 near Stillorgan.
And the trend appears to be continuing despite the introduction of a special 10 per cent stamp duty rate on the bulk-purchase of traditional housing last May.
The new “must have” for luxury residential buildings in Boston are roof terraces, and the report notes that the Irish PRS market will likely follow Boston in the adoption of this amenity.
According to the report, just 10.3 per cent of Dublin developments have a roof terrace, while in Boston over 56 per cent of such buildings have increased their outdoor residential amenities to include rooftop decks and terraces or outdoor lounge areas.
“Also fire pits and outdoor grills, as well as garden walks and walking paths, are featuring in the majority of the new Boston multi-family developments.”
In addition, over half of new luxury rental developments feature an outdoor and/or indoor swimming pool, while outdoor kitchens have also become very popular in Boston’s luxury apartment developments.
Community gardens and urban farms have also become increasingly favoured by property developers, with 29.7 per cent of developments home to such facilities in 2017 compared with 37.1 per cent in 2019.
Increase rents
One of the biggest growth areas when it comes to amenities is the provision of facilities aimed at caring for pets - which can pay dividends for complex investors and operators.
According to the report for example, dog parks and washing stations have become increasingly popular in Boston, and can increase rents.
Residents in BTR developments in Boston pay an average cost of € 24.49 a month for community dog parks; an average of €22.64 a month for pet washing stations; and €18.48 a month for dog treats in the lobby.
This trend has already started to play in the Irish market, following the surge in pet ownership as a result of the Covid-19 pandemic. At Greystar’s Griffith Woods development in Marino, north Dublin, for example, rents start at €1,900 for a one-bed, and € 2,250 for a two-bed. And, there is an additional monthly fee of € 75 for tenants seeking to keep a pet, such as a cat or a dog, in their apartment, to cover “soiling and additional wear and tear”.
In addition letting agent Occu, which leases several residential developments in Dublin including Cheevers in Dun Laoghaire and Station Manor in Portmarnock, charges €50 per month for one pet and looks for a six week deposit, as opposed to four weeks for those without a pet.
