Daft reports Dublin rent increased by 5% year on year

Daft reports Dublin rent increased by 5% year on year

The Daft report shows Dublin rent increased by 5% year on year to the fourth quarter of 2012.  Dublin rents in the city centre increased by 6.4% over the past year. Rent rose nationally by 2.2% 

Rents outside the cities of Dublin, Cork and Galway declined by 1.1% over the past year showing a clear divide between urban and rural rents.  One of the main factors driving this is the cities are the main employment areas with people needing to live close to their work. With the cost of fuel and motoring in general, the cost of commuting is rising.

While there is an oversupply of property in many rural areas, the lack of new builds over the last 5 or 6 years is affecting the housing stock in the cities. Dublin rents and other city rents are being driven upwards due to a shortage of property to rent and to buy.  We would expect this to continue as the Government continue to make the rental market less attractive to investors.  An effective and efficient rental market is an important requirement to grow an economy.  People coming of employment age and foreign workers coming in to fill specific jobs, do not want to buy a property.  They want to rent good quality, affordable property in reasonable proximity to their employment

Ronan Lyons believes that “The fact that rents fell by 25% between 2007 and 2010 was a huge boost to Ireland’s competitiveness. Unfortunately, it is a boost that is long over. Rents are rising again. The figures from this, the latest Daft.ie Rental Report, show that rents nationally rose by 2.2% during 2012, compared to a fall 0.3% in 2011 and a fall of 2.5% in 2010. It is clear now that the period of sharply falling rents was confined to 2008 and 2009 alone.”