AKC News // First drop in rents in four years

Rents are now 2% lower than they were in January, according to property website Daft.ie's latest rental report. This is the first fall in rents in four years and Daft says it signals a move from the boom period of ever growing rents to a calmer period of more normal growth.

The latest Daft.ie national rents index shows that after being close to an average of €1,400 late last year, the national average rent has fallen to about €1,370 in April.

The index says that the rate of rent inflation has cooled from an average of 12.4% in the first quarter of 2007 to 3.5% in the first quarter of this year. Rents have fallen since January, dropping by about 2% between January and April.

It adds that while inflation in rents in Dublin is still the highest in the country, the top rate of inflation has fallen to 6% from as high as 12% late last year.

Daft.ie also says that the number of properties available to rent countrywide has increased from 6,500 in mid-2007 to almost 12,000 now.

Eoin O'Sullivan, a lecturer in Social Policy at Trinity College Dublin, says it is surprising that the rate of decrease in average rents is modest, given that the stock of rental properties nationwide increased from over 5,000 in May 2007 to almost 12,000 in May 2008.

He says a decline in employment in the construction sector, an easing in the flow of new migrants, sluggish sales on new houses which has lead in some cases to developers renting rather than selling their properties, are all possible contributors to the growth in properties available to rent.

Source: RTÉ Business: http://www.rte.ie/business/2008/0520/daft.html

The Daft Rental Index is also available on our website in the Indices section under

Date : 20-05-2008