Ireland’s property market fundamentals are creating compelling opportunities for investors in rental accommodation, despite rising mortgage rates. Rapid population growth combined with an inadequate housing supply continues driving rents significantly higher across the country’s major cities.
With strategic property selection and professional management, rental yields of 8-10% or higher are achievable – providing strong inflation-beating returns. As specialists in the Irish property market, KPM Group helps investors maximise gains through our comprehensive end-to-end property management services.
Surging Rental Demand Across Ireland
Ireland is experiencing its fastest population growth rate in over 150 years. Net inward migration coupled with natural growth has caused the population to expand by over 1 million people since 2011 – an increase of more than 20%.
This demographic boom has fueled skyrocketing demand for rental accommodation. However, a chronic undersupply of new construction means available rental properties are failing to keep pace with rapidly rising tenant demand.
Ireland’s rental shortage reached a record low of just 700 properties available nationwide in October 2022, down from over 3,400 a year earlier, according to property website Daft.ie. With tenant demand far outstripping supply, average rents have been climbing by 10-15% annually across cities countrywide – including particularly rapid rental inflation in Dublin, Cork, Limerick, Galway, and Waterford.
Strong Potential for Capital Appreciation
In addition to escalating rents, the prospect of continued capital appreciation also makes investing in Irish rental properties appealing right now. The average value of residential dwellings in Ireland has increased by 132% since hitting lows in 2012, based on data from the Central Statistics Office.
And with new home construction still lagging, residential property prices continue rising rapidly – up 8.6% nationally in September 2022 compared to the previous year. Even in the face of higher mortgage rates, this robust capital growth trajectory points to solid total return potential on investments in Irish rental accommodation over the long-term.
Maximise Returns with Professional Property Management
While Ireland’s rental market fundamentals are decidedly positive at present, proactive management strategies are critical for maximising investor returns in today’s high inflation environment. As a leading property management specialist based in Dublin, KPM Group helps landlords achieve optimal yields through:
- Best-in-class tenant acquisition and screening processes
- Preventative maintenance programs that minimise vacancy periods
- Effective delinquency management to optimise rent collection
- Ensuring ongoing regulatory compliance to avoid costly issues
By partnering with KPM and leveraging our extensive property management expertise, investors can mitigate the impacts of rising interest rates while unlocking the full rental income and capital growth opportunities available in the current Irish market.
Contact KPM Group today to learn more about current investment prospects and how our comprehensive landlord services can help maximise your returns.
Experience the KPM Advantage
For over 25 years, KPM Group has delivered specialist property management solutions for landlords throughout Dublin and across Ireland. Our hands-on approach covers every aspect of the rental cycle, from marketing vacant units and conducting viewings, to meticulously screening tenant applicants, rent collection, maintenance coordination, and ensuring full legal and regulatory compliance.
Whether you’re an experienced property investor or just entering the Irish rental market, KPM Group has the expertise to optimise your investment’s performance – even against the backdrop of today’s rising interest rates. Our team is ready to provide the trusted guidance and support you need to confidently navigate Ireland’s evolving rental landscape as a landlord.
Contact us today at KPM Group to learn more about our market-leading property management services and how we can help maximise your returns on Irish investment properties.
