This bulletin will update you on the current Accommodation situation in Ireland as we deal with the COVID-19 pandemic. We hope you are your families are safe and well.
Quarterly Daft.ie Rental Report
The latest survey of the Irish rental property market has been released by Daft.ie. Some highlights and areas to note:
- Rents rose nationally by 3.8%. As most city areas are now covered by Rent Pressure Zones, capping the maximum rise in annual rent to 4%, it appears that this government scheme is having its intended effect.
- Average monthly rent nationally is €1,418 but the most popular categories of accommodation for our clients cost more than average e.g.
- Dublin, 2 bed city centre apartment €2,100
- Dublin, 3 bed-semi in southern suburb €2,200
We frequently recommend that clients add 15% to 20% to published daft.ie rates for higher quality properties
- The immediate impact of Covid-19 was a drop in average rentals from March to April of 2.1%, the largest monthly drop since March 2009. It is unclear how much further rents may drop in the coming months or how quickly they may recover thereafter.
- For the moment, evidence from property agents would suggest that landlords are willing to drop rental prices in order to ensure occupancy, they do not want empty properties. For higher end properties leases signed during the current period, at lower than usual market rates, may be accompanied by a legal letter which the client must sign agreeing to ‘revert’ to market rates and RPZ (Rent Pressure Zone) levels when the market recovers. (Note: We are unsure how sustainable this is and will keep an eye on how this develops)
- While there are more properties coming on to the market in recent months due to the Covid-19 crisis, there were still only 3,800 properties available to rent in Ireland on May 1st. This number is also being offset by a disruption to the newly planned properties that were due to be constructed (more than 35,000 new rental homes were in the pipeline, when Covid-19 shut down the construction sector). According to Ronan Lyons, economist at Trinity College Dublin “Given that the pandemic is unlikely to change any of the long-term fundamentals driving underlying housing need, there is a danger that while its immediate impact might be to lower rents, its longer-term effect could be to worsen the shortage.”
Home sharing has become more common in the rental market and the cost of renting a room rose nationwide, from 4% in Dublin to 8% in Cork.
Snapshot of Dublin & nationwide rental rates, Q1 2020
(with year on year increases or decreases)