According to the latest rental report from Daft.ie, rents increased on a national basis by 3.9% in Q2 2016. This represents one of the largest quarterly increases since the series began in 2007 and as a result the average national rent has, for the first time, exceeded its 2008 peak by 0.8% to stand at €1,037.
The latest report highlights the extraordinary rate of rental growth in Dublin since the financial crisis. Compared to their lowest point in late 2010, rents in Dublin have now risen by 51.3% and are now 5.2% above their previous peak. The monthly cost of renting a two-bedroom house in Dublin 1 now stands at €1,504, having increased by 11% on an annual basis, while a two-bedroom apartment in Dublin 2 costs €1,741 a month, an increase of 9.2% in comparison to Q2 2015.
Strong rental growth was also observed in Ireland’s other regional cities of Cork, Galway and Limerick, where rents have increased on an annual basis by 18.2%, 13.9% and 15.5% respectively. Indeed, rents in Cork and Galway are now 4% and 10% above levels recorded eight years ago. Outside the cities, the average rent remains 5.5% below peak levels.
Underlining the strong rental growth observed in Q2 is the continuing shortage of rental properties on the market. Nationally, there were 3,600 properties to rent, 1000 fewer than on the same date a year previously. Meanwhile in Dublin, there were just over 1,400 Dublin homes available to rent on August 1st, down nearly 350 on the same date a year earlier.