On Daft there are 184 2-bed apartments in South Dublin City and Dublin City Centre asking €1400 or more (which is what the Alliance asks, although it seems €1300 is the clearing price). In price and location terms, these are the direct competition for the Alliance.
If I remove the price filter, there are 1,017 2-bed apartments in total in these areas. So...
> The Alliance is in the top c.15% most expensive South City and City Centre 2-bed apartments.
> In absolute terms, there only c.200 more expensive 2-bed apartments in these areas of Dublin.
> Between those 200 and the 200 in the Alliance, you could accommodate about 20% of Google's employees.
> The Alliance has the benefit of being highly lettable given Google and other hi-tech firms in the area
> It also has the intangible benefit of being a landmark building with character and thus potentially having OO as well as investor appeal.
Ergo, €200,000 should be close to a ceiling on Dublin 2-bed apartments and an 8% gross yield should pinpoint the actual price you pay.
Whats quite interesting is that they are openly pitching this at 7.25% gross yield on rent.
I know the "market is the market" but this will actually slow down the market!
Some of the foreign money I've seen is making offers priced for almost double this return on gross rental yield on apartment blocks.
And this is a Non Nama bank remember - Ulster.
NAMA and the other banks are going to be expecting to get 14 times the gross rent on apartments. I know the market may not deliver this but it essentially freezes the stock on the shelves for another year.