The latest edition of the RTB rental index has shown that, on a national basis, rental growth increased by 0.5% in the first quarter of 2016.
In Dublin, rents increased by 0.2% when compared with the fourth quarter of 2015. Looking at trends in more detail, rents for houses and apartments increased by 0.6% and 0.4% respectively in comparison to the fourth quarter of 2015. Furthermore, on an annual basis, rents in Dublin increased by 8.7%. Rents in Dublin have continued to grow strongly since they bottomed out in the first quarter of 2011 and are now 0.2% higher than their previous peak which occurred in the fourth quarter of 2007. As a result it now costs €1,314 to rent a property in Dublin. Dublin’s strong rental performance is being driven by a lack of supply which continues to worsen. According to Daft.ie, just 1,100 properties were available to rent in the first quarter of 2016, the lowest since the series began in 2006.
Rental growth was stronger in properties outside of Dublin in the first quarter of 2016, growing by 0.9% in comparison to the fourth quarter of 2015. This rate of growth was driven by apartment rents, which increased by 4.2%, while rents for houses declined by 0.5%. On an annual basis, rents outside of Dublin increased by 8.8%. Despite the strong rate of growth witnessed during previous quarters, rents for properties outside of Dublin remain 13.9% below their previous peak.