Rents for private accommodation in the Dublin region increased by 4.7pc in Q2 compared with the same period last year, according to the latest Private Residential Tenancies Board (PRTB) quarterly rent index, which also reveals that rents outside the region fell by 1.3pc during the same period.
Compiled by the Economic and Social Research Institute (ESRI) and based on the PRTB’s register of over 273,000 tenancies throughout Ireland, the research also reveals that national rents in Q2 were up by 1.3pc on a quarterly basis and by 0.7pc compared to the second quarter of 2012.
Rents in Dublin grew by 3.5pc when compared with the first quarter of 2013 and by 4.7pc on an annual basis. While Dublin house rents increased by 2pc, rents for Dublin apartments rose by 4.5pc compared to Q1 2013. On an annual basis, Dublin house rents rose by 3.6pc, while Dublin apartment rents increased by 5.6pc.
However, outside Dublin, overall rents in the second quarter were down by 0.3pc on a quarterly basis. On an annual basis the decline was 1.3pc. Rents for houses outside Dublin recorded a similar quarterly change, declining by 0.4pc, but fell by 3.2pc on an annual basis. The index for apartment rents outside Dublin recorded a similar quarterly decline in the second quarter. However, on an annual basis, rents for apartments outside Dublin were 0.9pc higher than a year previously.
Rents for apartments nationally went up by an average of 2.4pc compared to Q1 (€842 from €822), and by 2.8pc when compared with Q2 of last year (€842 from €819). In contrast, the increase in monthly rents for houses nationally was virtually unchanged from the first quarter of the year (€743 from €742), and this represented a decline of 1.5pc when compared with the second quarter of 2012 (€743 down from €755).
“The latest PRTB / ESRI Rent Index is really a story of two markets – the Dublin region, where rents are growing strongly, and the rest of the country where there was actually a slight decline in quarter two as compared with the first quarter of 2013,” said director of the PRTB, Anne Marie Caulfield.
“The rate of increase accelerated in Dublin between quarter 1 and quarter 2 of 2013. This probably reflects the end of the bedsits market, with some landlords of that type of accommodation exiting the rental market.
“Outside Dublin the rental picture is quite different. There has been a year on year decline of 1.3pc and that continued for Q2, albeit at a more moderate pace of just 0.3pc. So rents outside of Dublin are broadly holding steady, while Dublin rents are increasing,” she said.