From 2018 to 2024, nearly €10 billion was invested in the private rental apartment sector in Ireland, with 95 per cent of this investment occurring in Dublin. This investment, in many cases, funded the construction of thousands of new apartments. Unlike other European cities such as Amsterdam, Berlin and London, the institutional ownership of rental properties had not been a feature of the Dublin market prior to this point. Today, domestic, European and US investment funds own and operate a combined 34,000 units in the capital.
While Dublin’s private rented sector has clearly scaled and while its new apartment stock is more energy-efficient than any of the buildings that preceded it, the majority of our new institutional landlords are still not availing of or implementing the sustainable processes that would maximise their buildings’ potential values.
According to our research, the bulk of the private rental apartment buildings in the Dublin market do not have top-tier sustainability credentials under the BREEAM, LEED or WELL certification systems. Indeed, CBRE estimates that 70 per cent of all of the private rental apartment schemes built since 2020 (83 schemes in total) have no rating at all.
To focus on BREEAM specifically, just 10 buildings in Dublin have achieved the ‘excellent’ result under the BREEAM rating system. Seven of these buildings achieved this accreditation at the time of construction, while three achieved it during use following their completion.
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We see an opportunity for more landlords to protect and enhance the value of their assets by seeking to achieve a BREEAM In-Use ‘excellent’ credential on the buildings they currently own and operate.
As part of our research, we highlight two recent cases where landlords in Dublin have implemented strategies to achieve the BREEAM In-Use ‘excellent’ credential. Spencer Place, located in the city’s north docklands and developed by Ronan Group Real Estate (RGRE) and Fortress Investment Group, and Opus at 6 Hanover Quay, sold in 2023 by Carysfort Capital and TPG Angelo Gordon to Spanish investor Pontegadea, are two schemes that have now secured the BREEAM In-Use ‘excellent’ credential. Notably, Spencer Place earned the credential with a rating of 79 per cent, making it the highest-scoring BREEAM residential asset in Ireland and the UK. We were delighted to work with the landlords of both buildings on achieving their path to certification.
The importance of sustainability was clearly evidenced in the latest CBRE European investor intentions survey, which found that more than 95 per cent of real-estate investors factor it into their investment decisions.
BREEAM In-Use high-scoring properties go far beyond what is required in the building regulations. For residential assets, aspects that encourage community and wellbeing score well. Some specific examples include:
- High-quality end-of-trip facilities such as a designated bike ramp away from cars
- Excellent wayfinding features including sound loops, Braille and clear signage
- Social and community spaces, including workspaces, gyms, cinemas, games rooms and bookable kitchen and dining spaces for hosting.
The minimum regulatory standards of NZEB (nearly-zero energy building) provide a good foundation for energy- and carbon-efficient performance, but it doesn’t address investor demands for environmental and social sustainability performance. Going beyond regulation through a design and construction or in-use sustainability certification provides a clear indication to the market of a high-quality, future-proofed asset.
Rachael McGinley is head of sustainability at CBRE Ireland
