The average national rent rose 2.2% during 2012, representing the first annual rise in rents since 2007, according to the latest Daft.ie Rental Report. The average rent nationwide in the final quarter of 2012 was €808, compared to €790 in late 2011.
The increase in rents is being driven by Ireland’s largest cities. Rents in Dublin, Cork and Galway experienced their second consecutive year of growth, with annual rises of 4.9%, 1.8% and 2.3% respectively. The number of properties available to rent nationwide is also at its lowest since mid-2008.
Rents elsewhere continued to fall, with annual drops of 1.1% in Limerick city and 2.8% in Waterford. Average rents outside of the cities experienced their smallest annual decline since the start of 2008 but were still down by 1.1%.
Rents in Munster fell by 1.3% in 2012, compared to a fall of 1.9% a year previously. In Tipperary, rents were 2.3% lower on average in the final quarter of 2012 than a year previously. The average advertised rent is now €569, a fall of 27% from the peak in 2007.
Commenting on the report, Ronan Lyons, Economist with Daft.ie, said: “While much of the country is still dealing with a glut of properties from the bubble, it is increasingly evident that there is a shortage of rental properties on the market in urban areas, and in particular Dublin. This may be alleviated temporarily by stock currently held in NAMA coming on to the market, but ultimately Ireland’s major cities will need to prevent future inflation in rents by planning for new construction.”
Year-on-year change in rents – major cities, Q4 2012
Dublin: €1,089, up 4.9%
Cork: €797, up 1.8%
Galway: €780, up 2.3%
Limerick: €638, down 1.1%
Waterford: €597, down 2.8%
The full report is available from http://www.daft.ie/report/ronan-lyons-2012q4-rental and includes a commentary by Ronan Lyons, an economic researcher at Balliol College, Oxford & Economist at Daft.ie, as well as an analysis of affordability and statistics on residential yields around the country.