Average rents across Ireland increased by 6.8% in 2023 to reach €1,850 per month, according to the latest report from property website Daft.ie. While substantial, this rise represents a slowdown compared to the previous years, when rents increased by 13.7% in 2022 and 10.3% in 2021.
Stabilisation in the Capital
The reducing rate of rental inflation is being driven by Dublin, where open market rents rose by just 2.6% in 2023. This near stabilisation comes as the construction of rental homes in the city leads to an easing of the supply shortage. The average monthly rent in Dublin is now €2,384.
Double Digit Growth Outside Dublin
In contrast, rental inflation remains high outside of the capital. Rents increased by an average of 10.6% across the rest of the country. The pressure on rents is clear from the figures in some cities. In Galway, the average monthly rent is now €1,999, an 11.3% annual increase. Rents in Limerick and Cork rose 14% and 7.9% respectively.
Highest Inflation in Ulster
The highest inflation was in Ulster, where rents rose by close to 17%. Rents in Dublin’s commuter belt saw the smallest increase, but still a sizeable increase of 7.5%.
Slight Rise in Availability
There was a slight increase in rental availability nationally towards the end of 2023. The number of rental homes listed grew by 937 between October and December. However, availability remains tight with just over 2,200 homes listed at the start of this year.
Supply is the Key Issue
Construction of purpose-built rentals has eased pressure on rents in Dublin but remains minimal elsewhere. With demand still strong, further supply is urgently needed countrywide.
Policy Focus on Supply
Experts emphasise that policymakers must focus on enabling supply across the whole rental market. Market forces of supply and demand work when allowed. More available rental stock across Ireland is essential to meet demand and stabilise rents.
Outlook for 2024
With viability challenges and slowing construction, rental shortage issues look set to continue nationwide in 2024. Rents seem likely to keep rising strongly outside Dublin. Further measures to boost supply will be key to easing pressures on the rental market.
KPM’s Role as Leading Property Managers
As Ireland’s leading residential property management company, KPM manages over 22,000 rental homes. With deep experience navigating Ireland’s rental market, we understand the supply and demand issues driving rents.
Focus on Quality Accommodation
KPM provides quality rental accommodation for tenants nationwide. We manage properties on behalf of clients across all market segments – from apartments to family homes. Our expert team ensures the highest standards for both landlords and tenants.
Long-Term Perspective
With over 40 years of experience, we bring a long-term perspective. As the Daft report shows, Ireland’s rental market faces structural supply deficiencies. KPM continues working diligently to provide rental homes and high-quality services despite the challenges.
Partnership Approach
KPM partners with institutional investors, developers and private clients to increase rental housing supply. We provide trusted end-to-end property management. This allows our partners to focus on creating new quality rentals to help address Ireland’s shortage.
