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Office space shortage could cost the capital 60,000 jobs

It is estimated that 14,000 new homes and some 716,000 square metres of office accommodation would need to be developed at a cost of more than €3bn to provide workspaces and housing if Dublin attracts new financial services jobs after Brexit. As many as 60,000 jobs could be created if major financial firms move staff from London to Dublin in the wake of Brexit.

But a new analysis says the State would need to secure a massive investment of more than €6bn in housing, office accommodation and transport services to make the IFSC and regional locations attractive to global giants

Earlier this week, Bloomberg reported that thousands of jobs at London's largest financial institutions were at risk of leaving the country after Brexit, with Paris, Dublin and Frankfurt most likely to reap the benefits.

More than 430 international operations are already approved to trade in the IFSC, including Société Generale, Wells Fargo, Credit Suisse and BNY Mellon, and our 12.5pc corporation tax rate makes Ireland an attractive destination.

But the lack of office space would need to be addressed to secure gilt-edged investment, an analysis by Future Analytics Consulting (FAC) finds.

The firm, which conducts research on behalf of the Housing Agency and other Government bodies, says that 14,000 new homes and some 716,000 square metres of office accommodation would need to be developed at a cost of more than €3bn to provide workspaces and housing.

The analysis was based on one-in-10 financial jobs in London - or 35,800 posts - moving to Dublin.

If these jobs were delivered, around 25,000 spin-off posts would be created.

The analysis says that Brexit offers "substantial opportunities" for Ireland to capture additional employment and investment, but that spending on infrastructure and a dedicated response to the housing crisis would be required.

FAC planning consultant Stephen Walsh said that while the 10pc employment target appeared "ambitious", it reflected the opportunity which existed.

"Ireland has a strong international reputation for financial services, and is viewed competitively at a European level. Effective planning now would see us benefit, otherwise we may see Ireland lose out to other European regions."

Given that we are currently not building sufficient homes to meet demand, delivering 14,000 units represented a "major challenge" to the economy and construction sector.

Director of FAC Stephen Purcell said that realising the potential growth would involve resolving a number of issues, including the delivery of infrastructure, particularly housing.

Fine Gael MEP Brian Hayes has called for the European Banking Authority (EBA) to be relocated to Dublin after the head of the banking watchdog, Andrea Enria, said in advance of the UK referendum that they would have to leave London if a Brexit occurred.

Mr Hayes is now arguing that the Irish government should work to convince European colleagues that Dublin is the "ideal location" for the EBA.

"Firstly, Dublin shares the closest similarities to London in terms of language, business environment and financial services activity. This would make a move to Dublin much smoother than other capitals," he said.

"Secondly, since most of the financial watchdogs are based in Germany or France, it would make sense to spread the EU's expertise in the area of financial supervision to smaller member states which can provide benefits of their own.

"Thirdly, Ireland as a country has come through a huge period of bank restructuring since the crisis and therefore the Irish Government would have the understanding and knowledge to facilitate the EBA's work in Dublin."

It has been reported that the IDA pitched to UK and international lenders, including Standard Chartered and the Royal Bank of Scotland, about relocating hundreds of traders and support staff in the event of a Brexit.

There is movement on the development of new offices, with Nama developing around 350,000 square metres of commercial space in the Dublin Docklands, while the Poolbeg Strategic Development Zone is capable of providing another 130,000 square metres.

While there is likely to be sufficient land for housing and commercial purposes, additional services, including transport and other infrastructure, will be required.

However, the Government has set aside a €200m so-called 'Local Infrastructure Fund' to deliver roads, bridges, utilities and other services needed to open up land for development.

Some 49,000 homes planned for Dublin cannot go ahead due to "infrastructure deficits" which will cost €165m to deliver.

While work has begun on more than 2,000 new homes so far this year, it is well below the levels needed to meet existing demand.

Development of a second runway at Dublin Airport would also add capacity and the increased connectivity would make the capital a more attractive business destination.