Residential Rents Rise to Record Levels in Ireland
According to the latest quarterly Rental Report by Daft.ie, Irish residential rents rose nationwide by an average of 3.9% in the second quarter of 2016. This is the largest three-month increase in rents since early 2007 and means that, at €1,037 in the second quarter, the average monthly rent nationwide is at its highest level on record.
In Dublin, the annual rate of inflation in rents, in the year to June 2016, was 11.1%; it's highest since late 2014. Rents in the capital are now 5.2% higher than their previous peak in early 2008. For the fourth quarter in a row, the highest rate of inflation country-wide was in Cork city, where rents rose by 18% in 12 months. Rents in Galway are 13.9% higher than a year previously, while rents in Limerick have risen 15.5% in the last year. In Waterford city, rents have risen by 13.3% in twelve months, while outside the major cities; the increase has been 9.7%.
There were just over 3,600 properties available to rent nationwide on August 1st, an increase on the 3,100 available in May. However, rental listings rise every year ahead of the academic year and the August figure is the lowest on record for the time of year. For comparison, two years previously, on August 1st 2014, there were almost 6,800 properties listed nationwide.
Commenting on the report, Ronan Lyons, economist at TCD and author of the Daft Report, said, "Ahead of a new academic year, the latest figures highlight the severe shortage of accommodation for students. While a large number of purpose-built student apartments are either being built or are planned, these will take time to come on stream and will only cater for those on higher incomes. The majority of students will face tough choices about where to study and where to live."Year-on-year change in rents, Q2 2016
- Dublin: €1,520, up 11.1%
- Cork: €1,051, up 18.2%
- Galway: €932, up 13.9%
- Limerick: €829, up 15.5%
- Waterford: €712, up 13.3%
- Rest of the country: €736, up 9.7%