Rents in Dublin continue to rise

RENTS in Dublin have increased by 17.6 per cent over the past three years according to the lastest report from Daft.ie.

Rent inflation in the capital rose by 4.9 per cent to 11.2 per cent in the final quarter of 2013 alone but prices have been rising steadily since the same period in 2010.

Dublin rents are still 15.7 per cent below their highest point during peak levels in 2007 but tight supply is expected to cause further hikes over the coming year.

Fewer than 1,500 properties were available to rent in Dublin on February 1 this year, compared to over 6,700 on the same date five years ago.

Commenting on the report, Ronan Lyons, economist at TCD and author of the Daft Report, said:

“The on-going acute shortage of rental accommodation in Dublin continues to affect rents in the capital.

“With no sign of new supply coming on stream any time soon, the onus is now on the government to encourage construction in the capital. This could be best done with reform of land use and the planning process.

“Elsewhere, rents are largely stable, although if rents continue to rise at close to five per cent a year in other cities and in Leinster, this will be problematic for Ireland’s competitiveness.

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Dublin 4 remains the most expensive area for rents in Dublin with an average two-bed renting at

?¬1,578 per month. Rents for a two bed unit in West Dublin are averaging at

?¬928, the cheapest in the capital.