The average rent in Dublin has increased by 2.8% since the same period last year and the number of rental properties available in the capital is down 70% from the peak in 2009, according to the latest report published by Ireland’s biggest property website, Daft.ie.
The average rent nationwide is now €820, which is 0.8% higher than a year previously.
The performance of rents in the other major cities varied, with Galway experiencing a 2.2% rise over the last twelve months, Cork remaining largely stable (-0.4%) and Limerick and Waterford experiencing 2.2% and 4.0% falls respectively. Rents outside the main cities rose 1% in the third quarter of 2012 but remain 1.5% lower than a year previously.
Rents in Munster fell by 1.6% in the year to October 2012, compared to a fall of 2.7% a year previously. In Tipperary, rents were 3.7% lower on average in the third quarter than a year previously. The average advertised rent is now €592, a fall of 27% from the peak in 2007.
Commenting on the report, Dr. Lorcan Sirr, Lecturer in Housing, DIT said; “The numbers of individuals and families renting has rocketed in the last five years. Across Ireland, about 29% of all people now rent, with 18.5% renting from the private sector. This is roughly the same level as in the mid-1950s. But what is more interesting is the speed of change: numbers renting in the private sector have increased by 86% since 2006.”
Ronan Lyons, Economist at Daft.ie, said: “The latest Daft.ie Rental Report shows continued falls in the available number of rental properties nationwide, but most significantly in Dublin. There are now fewer properties on the market than at any point since early 2007, when there were significantly fewer people renting. After close to two years of static prices in the capital, this change in supply appears to be impacting rents in Dublin, which have risen just ahead of inflation over the last two years.”
Year-on-year change in rents – major cities, Q3 2012
Dublin: €1,017, up 2.8%
Cork: €867, down 0.4%
Galway: €791, up 2.2%
Limerick: €680, down 2.2%
Waterford: €624, down 4.0%