Ireland has experienced one of the highest rental price increases in the EU since 2010, with rents jumping 100% over the last 14 years. In this article, we aim to provide insights & expertise to navigate these rising housing costs.
Major Increase Outpaced Only by Baltics
The 100% rent increase in Ireland is the third-highest in the EU, outpaced only by Estonia and Lithuania. Additionally, Irish house prices grew 1.4% year-over-year in Q3 2023 even as property costs declined across the EU.
Industry Expects Upward Price Trajectory
Estate agents predict continued house price growth, driven by favourable demographic changes, potential interest rate drops, and robust economic conditions. However, supply shortfalls remain a massive concern, with new housing unable to match demand.
Planning Delays Stymie Construction
Slow planning permission restricts new construction. A spokesperson for KPM Group explained, “We need more houses to meet demand and we need more planning approvals so that more homes are built.” Insufficient housing inventory will hinder market growth and compound affordability issues.
Dublin Rents Most Costly in Europe
Alongside national trends, Dublin rents are now the most expensive in Europe. The supply-demand imbalance is especially acute in Ireland’s capital and surrounding counties.
Government Policy Seeks to Boost Inventory
In response to chronic undersupply, the government instituted new student housing rules allowing landlords to restrict tenancies to academic terms. By mitigating vacancy risk, this policy aims to stimulate building. KPM stays abreast of the latest reforms to inform clients.
What does this mean for landlords?
While housing undersupply causes affordability issues for tenants, it also presents opportunities for well-positioned landlords. With demand outweighing housing stock, rental yields can achieve new highs. Strategic investors who capitalise early on emerging trends stand to benefit most.
Property Management Ireland
As Ireland’s premier property management company for over 25 years, KPM brings market-leading experience to help clients navigate fast-rising rents and home prices.
With personalised service tailored to each property, KPM optimises asset performance while relieving clients of day-to-day oversight burdens. Get in touch today to learn how KPM’s consultative approach and up-to-the-minute knowledge of Irish regulations can maximise your investment.
