Real Estate & Construction Live Portfolio

The severe undersupply of housing, rising interest rates, and affordability issues have created both challenges and opportunities for investors in the sector. As governments and private companies scramble to address these crises, real estate investments in residential development, affordable housing, and construction materials are expected to play a key role in shaping the future of this industry.

Ireland’s Housing Crisis: A Market Under Pressure

Ireland’s housing crisis is one of the most severe in Europe, characterized by:

• Housing Undersupply: The country needs an estimated 35,000–70,000 new homes annually, depending on what statistics you look at but construction is falling short.
• Soaring Property & Rental Prices: Dublin and other major cities have seen housing prices rise significantly, putting homeownership out of reach for many.
• Rising Construction Costs: Inflation, material shortages, and labor costs have made new housing developments increasingly expensive.
• Homelessness & Affordability Issues: A lack of affordable housing has led to record homelessness levels and growing social unrest.

Investment Strategies for the Real Estate & Construction Sector

1. Invest in Residential REITs & Homebuilders

With housing in short supply, residential-focused REITs and developers will see high demand and price appreciation.

• Top REITs: AvalonBay (AVB), Equity Residential (EQR), Irish Residential Properties REIT (IRES).
• Homebuilders: Glenveagh Properties (Ireland), Lennar (LEN), D.R. Horton (DHI).

2. Consider Infrastructure & Public Housing Investments

Governments are pouring billions into public housing and infrastructure. Companies involved in these projects will benefit.

• Construction firms: Caterpillar (CAT), CRH (Ireland), Vulcan Materials (VMC).
• Infrastructure ETFs: Global X U.S. Infrastructure Development ETF (PAVE).

3. Explore Green & Smart Real Estate Solutions

Sustainable real estate and energy-efficient housing are the future.

• Companies in energy-efficient construction: Kingspan Group (Ireland), NextEra Energy (NEE).
• Green REITs: Hannon Armstrong Sustainable Infrastructure (HASI).

• Rising Interest Rates: Higher mortgage rates can slow down real estate demand.
• Regulatory Changes: Government policies on rent control and zoning could impact profits.
• Economic Slowdowns: Recessions can hurt commercial real estate values.