Dublin, February 9th, 2021. The latest daft.ie rental property report identifies the real impact which the Covid-19 Pandemic has had on the Irish rental market. For months we have heard of increases in the number of properties to rent in Ireland’s capital city, largely due to an exodus of ex-pats and locals back to home countries or out of the city. This increase in availability has led to an overall reduction of approximately 3% in rental costs in Dublin. That said, rental prices in every other county in Ireland increased by 5.4% with supply at an all-time low outside of the capital. Combining the characteristics of the Dublin market with the rest of Ireland represents and overall increase in rental costs in Ireland of 0.9%.
The Dublin Market:
According to daft.ie, the most striking element of the Q4 2020 report is the glaring evidence that “Dublin and the rest of the country do not constitute the same rental market. However many rental markets there are in Ireland, it is certainly more than one – with conditions so vastly different in Dublin to the rest of the country”. While the cost of renting in Dublin decreased in the last quarter, supply and demand continued to increase 1:1 despite the pandemic.
From CCR’s perspective, while there are certainly more options to view when home finding in Dublin, budget expectations and the pressures around decision making continue to cause challenges for those relocating to the capital. Salary to rental cost requirements of most letting agencies continue to cause difficulties, particularly for single income families, a maximum of 40% of take-home pay being allowable as rental expenditure. The turnaround of properties from viewing to securing continues to be fast paced by comparison to other locations outside of Ireland.
The rest of Ireland:
According to daft.ie, “rather than a more liquid market bringing rents back down from a spike, it is an even more strained market seeing rents rise even further. Compared to the same period a year earlier, the number of homes coming on to the rental market outside Dublin fell by 17% April 2020-January 2021, from an average of 2,073 per month to just 1,715. Demand also fell, but by less (just 10%) and remaining at a higher level than supply (2,490 properties coming off per month).”
The average national rent currently sits at €1,414 with just 2,600 homes available to rent in Dublin on Feb 1st, 2021 (up 64% on the same date a year previously). In the rest of the country, the number of available rental properties was just 1,139, down 43%. From CCR’s perspective, shortage in supply is a big issue outside of Dublin with as little as between 1 and 3 options being available for many clients, irrespective budget.
Corporate Care has made every effort to ensure that this information is current and correct however we cannot accept responsibility for changes in government policy or health guidelines which may impact our services, or the information contained herein. www.corporatecare.ie