The average price of rent in Dublin has risen to almost €1,600; an increase of €128 over the past 12 months, according to a new report.
The figures, produced by the Residential Tenancies Board (RTB) in conjunction with the Economic and Social Research Institute (ESRI), showed that nationally, rents have grown an average of 7.6% since this time last year, particularly in and around urban centres, with over half of all tenancy agreements in Dublin and the greater Dublin area.
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Dublin city rents have accelerated by 9.5% since this time last year, driven by the demand for rental apartments; apartment rent prices grew 9.1%, while house rent prices grew 6.4%.
When we look outside Dublin, the average rent stands at €817 – an increase of 6.3%. The highest average rents in the country are in the capital, followed by Cork city (€1,123), Galway city (€1,065), Limerick city (€880) and Waterford city (€646).
Interestingly, the most rapid growth rate of rent prices is in Limerick city, where rents have increased by 12.4% since Q2 last year.
Existing vs new tenancies
The report also shows for the first time the distinction between new and existing tenancies; showing a sizeable difference between rates of increase for sitting tenants and first-time renters. The figures show that annual rent inflation for existing tenancies grew by 4.9% over the past year, compared to a growth of almost double that (8.4%) for new tenants.
Commenting on the report, Rosalind Carroll, Director of the Residential Tenancies Board said: “Affordability remains a significant issue in the rental market with continued economic and population growth contributing to rising demand. We can see rents have continued to increase with growth rates back up in Dublin.
“This new data is important in assisting the RTB to prepare for the new enforcement powers, which it is hoped will be introduced before the end of the year. This will allow the RTB to investigate and apply sanctions where there are contraventions to the rent restrictions in Rent Pressure Zones,” she concluded.