A new report by property listings website Daft.ie highlights a sharp rise in rents across Ireland, with the most significant increases occurring outside Dublin. The average monthly rent nationwide has climbed to nearly €1,836, marking a 5% increase compared to the same period last year.
While Dublin’s rental growth was modest at 2.5%, reaching an average of €2,395 per month, other cities experienced more substantial hikes. Limerick saw the largest surge, with rents soaring by 17.5% to €1,933 per month. Cork’s rents rose by 8% to an average of €1,870, while Galway and Waterford reported increases of 5% and 6.9%, respectively.
Economist Ronan Lyons of Trinity College Dublin, who authored the report, attributes Dublin’s lower rental inflation to improved supply. “There’s about maybe 50% more homes available to rent in Dublin now than 18 months ago,” he noted. In contrast, rental availability in other parts of the country remains critically low.
Lyons emphasized the challenges in building new rental properties outside Dublin. High costs and productivity issues in construction mean that building new apartments is not financially viable in most regions, exacerbating the shortage and driving up rents further.