Rent prices in Dublin are now ‘close to static’, while they continue to surge outside of the capital, according to the latest Daft report.

The latest Rental Price Report from the Irish property website finds that rents around the country rose by an average of 1.8% in the third quarter of the year.

That compares to just 0.4% in Dublin.

The difference is driven by rental availability, with 700 more homes available on November 1st than on the same day a year ago – some 600 of which are located in Dublin.

Daft Rental Price Report. Image: Daft.ie

All four major cities outside Dublin – Cork, Limerick, Galway and Waterford – saw quarterly rises of at least 5% in rental prices.

Report author Ronan Lyons said the “underlying story” in the figures is “one of supply working”.

“In Dubin, new rental supply has been built and as a result, we are seeing an end to rental increases,” he said.

“Whereas, elsewhere in the country, there has been no new rental homes built, supply is still very tight and rents are increasing at a very fast pace.”

Dublin

In Dublin, market rents are up an average 4.3% year-on-year.

The average listed rent is now €2354, up 130% from its lowest point in 2011.

There were almost 950 homes on the rental market on November 1st of this year, compared to fewer than 350 last year.

Ireland

Nationwide, rents are up an average of 8% year-on-year.

The average market rent around the country is now just under €1,825 per month – up 138.5% on its lowest point in late 2011.

On November 1st, there were almost 1,800 homes available to rent nationwide, compared to fewer than 1,100 on the same date a year ago.

Daft Rental Price Report. Image: Daft.ie

Mr Lyons said the increase is welcome – but there are still far too few homes available in a country that has at 330,000 households renting in the private market.

“Between 2018 and 2022, a significant pipeline emerged of new rental homes in Dublin,” he said.

“A steady flow of these homes, especially since 2022, has eased the very tight market conditions that had emerged after COVID-19 lockdowns.

“While most of the rest of the country is still experiencing double-digit inflation, market rents in Dublin are now close to static.

“High construction costs – and uncertain financing – has meant that viability is a challenge outside the capital – but the solution to high rents remains the construction of large volumes of new rental housing around the country.

“Given viability challenges, it is likely that policy supports will be needed.”

Average market rents, and year-on-year change, 2023 Q3

• Dublin: €2,354, up 4.3% year-on-year
• Cork city: €1,882, up 10.2%
• Galway city: €1,982, up 15.7%
• Limerick city: €1,864, up 16.2%
• Waterford city: €1,549, up 14.1%
• Rest of the country: €1,464, up 11.1%