For Relocators
Understanding Relocation Costs: A Comprehensive Guide
November 28, 2024
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A warm welcome to the July issue of PerchPeek’s Ireland Market Monthly update!
Here’s where you’ll find the hottest updates around employee relocation and international talent strategy, insights from our experts on housing and cost-of-living news affecting your staff, the latest trends in global mobility, and tips and tricks on ways to support your teams.
A fly-by summary
● Census 2022 figures released, revealing Irish population growth to over 5 million, average rent up 37% vs 2016, and new working habits - top insights for HR leaders
● Average rent in central Dublin now over €2,000 per month, and 2,500 new homes are to be built in north County Dublin - latest information to share with relocating employees
● Government publishes plans to overhaul the Irish immigration system, through increased digitisation and elimination of application backlogs - impact for Global Mobility leaders
● From renting furniture suites to snapping up a bargain on Facebook Marketplace or Adverts.ie, here’s how to help your relocating employees furnish their new home
The government has recently published the results of the 2022 Census in Ireland, and it’s super interesting reading for People leaders! Having an up-to-date understanding of ever-shifting demographic trends and their effects on housing and living costs will aid in making strategic decisions and effectively meeting the evolving needs of employees moving to Ireland.
Here’s a snapshot of the most significant findings from an HR perspective!
How have demographics changed since the last Census in 2016?
● For the first time in 171 years, Ireland's population exceeded the five million threshold, and is an 8% increase since April 2016
● The number of people with dual Irish citizenship was 170,597, representing a 63% increase from 2016
How has the rental market changed?
● Average rent increased by 37% in the six years to 2022, to an average of €273 per week
● 109,000 households were paying €300 a week or more for rent – more than double the 48,933 that were in 2016
● The proportion of households who rent their property increased by 7% from 2016
How have working habits changed?
● Approximately a third of all workers (just under 750,000 people) worked from home for at least some part of their week
● Almost 80% of households had a broadband connection in 2022, up from 71% in 2016
● There was a 7% increase in the number of people who cycled to work, and 4% fewer people commuting to work by train, LUAS or DART
PerchPeek insights
Taking the 2022 Census figures into account can really help get into your relocating employees’ shoes and understand the challenges they face when moving to Ireland. The growing population, while a massive boon for the economy, does of course put more pressure on the rental market, and so employees will need adequate guidance for securing a property.
This data can also be extremely useful in refining relocation plans and flexible working policies. This rental market data brings to light the rate at which rental costs are soaring, helping to define the level of compensation needed to cover living costs as a relocating employee. Plus, diving into the data on working habits means you can ensure your flexible working policies are competitive, helping you attract and retain top talent.
Check out the full findings on the Central Statistics Office website here!
As an HR Leader supporting relocating employees, you’ll no doubt be aware of the challenges they’re facing when dealing with Dublin’s rental market. To help offer support, we’re bringing you the latest rental stats and information about new housing developments in the planning.
According to the latest rent index from the Residential Tenancies Board:
● In central Dublin, the average rent for a new tenancy is now €2,063 per month - this is up +6.9% versus the previous year, when this figure was €1,930
● The average rent in the greater Dublin area (excluding Dublin) is at €1,509 - this is up +8.1% versus the previous year, when this figure was €1,396
● The average national rent is now over €1,500, up €30 from the previous quarter
The state-owned Land Development Agency (LDA) aims to develop 8,000 homes by 2026, and has recently struck a deal with developers to build 2,500 affordable homes in County Dublin.
Key facts at a glance:
● The development at Clongriffin will be the biggest State housing project in decades
● The aim is to provide affordable apartments with rents set 30% below market rates
● Clongriffin is located 7 miles north-east of the city, or just 17 minutes by Dart!
PerchPeek insights
Although it’ll be at least a year before this new development is available, it’s positive news that the LDA is pushing forward with plans to develop new homes in order to tackle Dublin’s housing crisis. As HR leaders supporting relocating employees, it’s a great idea to share details and updates on new housing developments.
While it can be challenging to snap up new build apartments as soon as they’re released, PerchPeek has the scoop on developments with new phases currently planned for later in 2023:
● Alto Frascati - Blackrock
● Griffith Wood - Dublin 9
● Hali - Cherrywood
● Hamilton Gardens - Cabra West
● St Edmunds - Lucan
● Walled Garden - Dundrum
Thanks to public transport expansion, it’s even becoming feasible to head for counties bordering Dublin such as Kildare, Meath and Wicklow - especially if flexible working is an option for staff!
To support relocating employees looking for a new home:
● Manage expectations around the challenges of Dublin’s rental market
● Advise checking out new build developments and offer guidance on desirable areas
● Offer flexible working options to ease pressure on employees living further away
As we saw earlier in the Census results, Ireland has been welcoming increasing numbers of migrants to its shores. As a result of the growing pressure on immigration offices to increase efficiency, the government has published its 2023 plans to improve the system. Here’s a summary of the plans and what they will mean for Global Mobility professionals!
According to the figures:
● The number of residents not born in Ireland has risen from 15% to 19% since 2016
● In 2022 the government issued 39,955 Irish work permits
● This is more than twice the number of work permits issued in 2021
The Department of Justice has now published its strategy to improve Ireland’s immigration system in 2023. Further updates are expected at the end of the summer and end of the year.
Summary of aims (source: Fragomen):
● To publish a roadmap for the transition of all immigration services to online processes
● To restructure immigration services in order to improve customer service, while ensuring that the security of the immigration system is maintained
● To prioritise improving efficiency and effectiveness
● To eliminate all processing backlogs across all immigration application types
● To ensure the fairness and efficiency of the Irish immigration system through new strategic policies and legislative proposals
Impact for GM leaders
Though it may take some time to see real change being effected, this plan is likely to have a positive impact on global mobility professionals supporting relocating employees.
The move towards digitising immigration services and elimination of processing backlogs will result in more streamlined processes and increased efficiency.
● For those supporting relocating employees, it will mean shorter processing times for work permits, which should both reduce time and resource spent on individual cases, and improve employee satisfaction as they may complete their move more quickly.
● For Talent Acquisition leaders, a shorter and easier process for obtaining an Irish visa makes the prospect of relocating to the country for work more attractive, therefore playing an important part in helping attract the top talent from overseas!
If your relocating employees are moving into long-term rented accommodation (as opposed to an Airbnb or a serviced apartment), they’ll find it super useful to receive advice about furniture!
More and more relocation policies are moving away from including shipping services by default due to the high cost involved, and providing alternative options instead, such as guidance on acquiring furniture once the employee has arrived in their new city.
And as we enter the summer - the busiest season of the year in the world of relocation - you may be seeing an increase in the number of staff relocating to Ireland. Which means you’re likely to be fielding an extra share of move-related queries! With that in mind, PerchPeek is here with our rundown of furniture options, to share and help take the weight off your shoulders.
Option 1: Rent furniture
● The most costly option - only recommended for short-term assignments (6-12 months)
● The easiest solution of the three, as delivery, assembly and collection are included
● Recommended providers in Ireland are Cort Global and Lets Furnish
● Large range of choices, from single items to furniture sets for entire rooms
Option 2: Buy second-hand furniture
● By far the most cost-effective option but requires the most time and effort
● Online marketplaces include Adverts.ie, eBay, Facebook Marketplace and Gumtree
● Employees should be careful on online marketplaces and be vigilant against scams
● Some charity shops like AgeAction, NCBI and Oxfam specialise in furniture
Option 3: Buy new furniture
● Less expensive than renting but more expensive than buying second-hand
● IKEA’s main Dublin store is in Ballymun, plus there are 8 other order and pickup points
● Other stores with low-cost options include Argos, Hanley’s Furniture and The Range
● Flat-pack furniture assembly services are available via FlatPack.ie - or hire a handyman!
Furnishing one’s flat isn’t just a necessity, it’ll also make a massive difference in helping relocating employees settle into their new city by putting a personal stamp on their place - it’s what turns it into a home! Our advice is to support relocating staff by presenting these options at the outset and helping them choose the best one to suit their budget and other requirements.
We hope you enjoyed this month’s update!
If you have any feedback, comments or questions about what's happening in your location, feel free to reach out via the form at the bottom of this page.
Thanks for reading, and see you next month!
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