The latest Irish Quarterly Rent Index of the Private Residential
Tenancies Board (PRTB), a State agency,
covering Quarter 4 of 2013, compiled by the Economic and Social Research
Institute (ESRI), shows continued strong growth in Dublin Rents of 2.1%
for the quarter, while outside Dublin rents in the fourth quarter dropped by 0.9%. The final quarter of the year is typically slower in the rental
market, following the annual peak in quarter three.
However, on an annual basis this means that rents in Dublin
grew by 7.6%, comparing Q4 of 2013 to Q4 of 2012. In Dublin rents for apartments
were up by as much as 10.5% between Q1 and Q4 2013, while house rents in
the capital rose by 6.6% over the same period. In contrast, the market
outside Dublin was more subdued, with ‘outside Dublin’ showing an increase of
1.1%, comparing Q4 of 2013 with Q4 of 2012. Some of the bigger urban areas
outside of Dublin (eg Cork and Galway) saw modest increases while in many areas
outside of Dublin rents declined
The Irish rental market experienced a peak to trough decline
of 26% between 2007 and 2012. While the peak-to-trough in the Dublin market was
similar to that experienced nationally, the growth in rents in Dublin (mainly in
2013) means that rents are now 15.5% lower than their peak.
These findings come from the latest Quarterly Rent Index of
the Private Residential Tenancies
Board (PRTB) covering
Quarter 4, 2013, which is
compiled for it by the Economic
and Social Research Institute (ESRI). It is claimed to be
the most accurate and authoritative rent report of its kind on the private
accommodation sector in Ireland because it reflects the actual rents
being paid, according to the PRTB’s
records, as distinct from the asking or
advertised rent, which is the
basis of other rent reports.
At a national level, monthly rent levels were broadly
unchanged in the fourth quarter of 2013. Looking at trends in more detail,
monthly rents for houses were lower in the fourth quarter when compared to
Quarter 3, down by 1.5% quarter on quarter. In contrast, rents for
apartments were 1.9% higher than in Quarter 3, 2013.
The sub-indices show that the national increase continues to
reflect differences in the rental market between Dublin and the rest of the
country. Rents in Dublin grew by 2.1% when compared with the third
quarter of 2013. While rents for houses in Dublin increased by 0.8%,
rents for Dublin apartments rose by 3.1% compared to Quarter 3, 2013.
Outside Dublin, in common with previous quarters, the indices
show a mixed picture. The indices show that, for properties outside Dublin,
rents in Q4, when compared with the third quarter of the year, were down by 0.9%. Rents for houses outside Dublin recorded a quarterly decline of 2%. The index for apartment rents outside Dublin, however, recorded a
quarterly increase of 1.6% in Q4.
In recent years rental growth has weakened in the fourth
quarter, following high activity levels in Q3, consistent with the demand for
student accommodation in that time period. These latest numbers for Q4 2013 are
in line with these previous trends.
On an annual basis, nationally, rents were 3.3%
higher than in Q4 2012. The differing performance by location and property type
evident in the quarterly change is also present in the annual rates of change.
Nationally, rents for houses were 1.6% higher, while apartment rents
were 5.2% higher than in the same quarter of 2012. Annual growth in the
Dublin market was stronger, up by 7.6%, with Dublin house rents up by
6.4% and Dublin apartment rents higher by 8%.
In contrast, annual growth in rents for the market outside
Dublin was more subdued, recording growth of 1.1% when compared to Q4
2012. Again the performance differs by property type. The rent for houses
outside Dublin increased by 0.2%, while apartments outside Dublin
experienced an increase of 3%.
Looking at the monetary level of rents, the average national
rent for a house in Q4 in 2013 was €744; in Dublin, it averaged €1,168 and
outside Dublin it was €608. The average apartment rent across the whole country
in Q4 of 2013 was €844; in Dublin, it averaged €1,070, while outside Dublin it
The PRTB website
on “rent index”) also contains an Average Rent Dataset which enables
people to check the average rent being paid for five different categories of
dwelling types throughout the country, in both urban and rural areas. This
enables people to check what is the actual rent being paid for, say, a
semi-detached house or a two-bed apartment in their neighbourhood, and in other
parts of the country.
Commenting on the Rent Index findings,
Anne Marie Caulfield, director
of the PRTB,
“The latest PRTB /
ESRI Rent Index continues to reflect a story of significant rent rises in the
Dublin region, while the ‘outside Dublin’ market remains much more subdued. For
instance, in Dublin apartment rents rose by 10.5% between Q1 and Q 4 last year,
while house rents rose by 6.6% in the same period. Outside Dublin, however, the
rents for houses showed a slight decline (0.4%) over the year”.
All landlords are legally obliged to register tenancies with
the board and the number of new registrations with the PRTB in
2013 was 114,405. Apartments
accounted for the majority of these registrations at 46%, with the next
largest share by property type accounted for by semi-detached at 26.3%.
Dublin city and county represents the largest market for apartment rentals,
accounting for 53% of all apartments.
The Index is of assistance for a range of Government
purposes, including housing policy generally and informing the Department of
Social Protection’s Rent Supplement scheme. It is also an important reference
document in landlord/tenant disputes on rent. It was developed in consultation
and co-operation with landlord representative groups such as the Irish Property
Owners Association, irishlandlord.com,
the Institute of Professional Auctioneers and Valuers, the Society of Chartered
Surveyors of Ireland, and tenant representative groups such as Threshold and USI
(Union of Students in Ireland).
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