Rental Trends in Ireland: Daft Report Shows Stabilization of Rent Inflation in Dublin

The latest report from Daft.ie indicates that while rents continued to rise nationally in the second quarter of the year, there has been a stabilization in Dublin, the capital city.

In the ever-changing landscape of the Irish real estate market, rental prices have been a topic of much discussion and concern. The latest report from Daft.ie, a leading online property marketplace in Ireland, sheds light on the current state of rent inflation in the country. The report indicates that while rents continued to rise nationally in the second quarter of the year, there has been a stabilization in Dublin, the capital city.

According to the quarterly rent report by Daft.ie, market rents increased by an average of 2.4% between April and June compared to the preceding three months. This signifies a 10.7% rise compared to a year ago, with the average monthly rent now standing at just under €1,800. It is important to note that this is a significant increase from the first quarter of 2020 when the average rent was €1,387. Back in late 2011, rents hit a low point of just €765 per month.

While Dublin boasts the highest average rate in terms of rent, reaching €2,344 per month, the rate of increase in the capital has experienced a moderation to just 0.3%. This marks "the second quarter in a row of muted increases," as described by the Daft report. However, outside of Dublin, the average increase between March and June was 4.3%, representing the second-largest quarterly increase recorded outside the capital since the start of the Daft Report in 2006.

The report also highlights that the supply of rental homes across the country remains “extremely tight” compared to previous years. As of August 1st, there were less than 1,200 homes available to rent nationwide on the Daft.ie website. Despite a marginal increase in rental home supply in recent months, the report emphasizes the ongoing "extraordinary shortage" of rental accommodation. Furthermore, it points out that Dublin has been the primary focus for the construction of new rental homes over the last five years. Approximately 13,000 new rental properties have entered the market in Dublin during this period, with the rate of construction accelerating from a few hundred units in 2018 to around 2,000 per year from 2019 to 2021.

Looking beyond the capital, the average rent in Cork city currently stands at €1,793, marking a 7.4% increase in annual terms. Galway city follows closely with an average rent of €1,867, reflecting a notable 12.2% year-on-year rise. Limerick city and Waterford city experienced increases of 11.5% and 12.1% respectively, with average rents reaching €1,738 and €1,471.

The Daft.ie report provides valuable insights into the state of Ireland's rental market. While rents continued to rise nationally, Dublin experienced a stabilization in rent inflation. The scarcity of available rental homes persists throughout the country, further exacerbating the situation. In this challenging market, it is crucial for both tenants and landlords to stay up-to-date with the latest developments and trends.