Rents rise to a peak of €2,118 in South Dublin

By William O’ Connor 

RENTS in Dublin has seen a jump in the year to June 2018 of 13.4 per cent according to the latest quarterly Rental Report by Daft.ie.

Rents in the capital are now 34 per cent, or almost €500 a month, higher than their previous peak a decade ago.

Overall rents rose nationwide by an average of 12.4 per cent in the year to June 2018.

The most expensive rented accommodation was to be found in South County Dublin at €2,118 per month and Sth Dublin City at €2,058pm. (see above graph)

This represents the ninth consecutive quarter in which a new all-time high for rents has been set and also in which annual inflation in rents has been greater than 10 per cent.

The average monthly rent nationwide during the second quarter of 2018 was €1,304. This is €274 per month higher than the previous peak in 2008 and over €560 higher than the low seen in late 2011.

 Rents continue to rise rapidly in other cities also. In Limerick rents were 20.7 per cent higher than a year ago, while in Waterford, the increase was 19.3 per cent. Galway saw an increase of 15.9 per cent, while in Cork, rents rose by 12.8 per cent.

Ronan Lyons, economist at Trinity College Dublin and author of the Daft Report, said: “While the building of new homes appears to be having some effect in the sales market, with inflation easing somewhat, there is no counterpart in the rental sector.

“While urban apartments make up almost all the net need for new homes in the country as a whole, just 13 per cent of new homes completed in the year to March were urban apartments. In that context, it is unsurprising to see rents rise once more.”

He added: “As before, with such a mismatch between supply and demand, policy must focus on dramatically increasing the construction of urban apartments, for both market and social housing needs.”