Foreign investors are aware of the housing shortage in Ireland, but don’t see it as a “huge constraint”, according to IDA Ireland chief executive Martin Shanahan.
At a recent Shannon Chamber of Commerce event, Shanahan said: “I don’t think (the housing shortage) is acting as a huge constraint yet because investors can also look at the data and look at the plans that are envisaged by Government in terms of increasing housing supply.”
He said he sees infrastructure, including the availability of energy, as a bigger challenge.
However, the Government’s decision to step into the OECD’s framework on tax has provided a new level of stability with increased inflows of investment plus a new rate of 15% in future for companies with revenues over €750 million. The State’s corporation tax rate is currently 12.5%.
Shanahan said the outlook for foreign direct investment was “reasonable”. Ireland ranked seventh in Europe for announced projects in 2021, which is a good performance for a country of its size.
He said “one of the reasons that we are winning investment (is) because Ireland looks a little better than other countries, because we are so open and welcoming and it is easier frankly to get work permits and visas for Ireland than other locations”.