The private residential rental sector in Galway is currently undergoing considerable transformation, reflecting not only local but national market dynamics. These changes are affecting landlords, tenants, and stakeholders across the region. This analysis presents an overview of the principal developments, incorporating expert commentary from Fergal Leonard, Director of DNG Leonard & Heaslip.
Enhanced regulatory framework and tenant protections
A prominent feature of recent change has been the implementation of stricter regulations to bolster tenant protections. The Residential Tenancies Board (RTB ) has enforced new standards regarding rent reviews, notice periods, and accommodation quality.
According to Fergal Leonard, “A more robust regulatory environment has certainly improved transparency for tenants, but it has also placed additional demands on landlords to maintain compliance. The government placed a lot of emphasis on landlords being able to obtain market rent for their properties after March 1, 2026, if the tenant vacated voluntarily.
"However, they did not explain that there would be a Rental Property Price Register. This register is preventing landlords from achieving market rent because it relies on outdated rent registrations. Landlords feel aggrieved at this move, as many of them will have spent money on their properties to enable them to achieve maximum rent.”
Rent Pressure Zones (RPZs )
Galway’s designation as a Rent Pressure Zone has directly addressed the issue of escalating rental costs. Under RPZ rules, annual rent increases are now capped at two per cent or at inflation, whichever is lower.
“The RPZ cap has stabilised rents to an extent, but it is also deterring some landlords from further investment in the sector," Fergal explained. "We are seeing a shift in the profile of rental property owners as a result.”
Supply and demand imbalances
There remains a persistent imbalance between supply and demand, with population growth, a vibrant student community, and professional migration contributing to heightened demand. Despite government initiatives to stimulate construction, the available housing stock continues to lag behind requirements.
“The shortage of quality rental accommodation is the biggest challenge facing Galway today," Fergal commented. "New builds are needed, but the pace is not matching the level of demand. With the announcement of the March 1 date, we found that many landlords did not rent their properties at the lower rents; instead, they decided to wait to see what the market would set the rent at.
"This has now resulted in nearly 45 per cent more properties available To Let in Galway city. The cheapest, at the time of going to print, is a one-bed apartment at €1750 per calendar month, and a two-bed apartment at €1800 per calendar month.”
Impact of short-term letting platforms
The expansion of short-term rental platforms such as Airbnb has further reduced the number of properties available for long-term tenants. Regulatory responses now require planning permission for certain short-term lets to balance tourism and local housing needs.
As Fergal notes, “The rise of short-term letting has tightened the market for traditional renters, and the authorities are rightly moving to regulate this segment, but not at a quick enough pace. It is not known what number of properties are available To Let in Galway city for short-term lets only through portals such as Airbnb, but I believe it is the main cause for the short supply in Galway city.”
Energy efficiency standards and retrofitting
Landlords are increasingly required to upgrade properties to meet stricter energy efficiency standards, in line with national sustainability objectives. While grants are available, financing these improvements can be a challenge.
Fergal stated: “Improving energy efficiency is a priority, but the cost of retrofitting is proving prohibitive for some landlords, particularly those with older properties.”
Landlord exits and sectoral restructuring
Several small-scale landlords are opting to leave the sector in response to increased regulation and reduced rental yields, leading to the rise of institutional landlords.
“We are witnessing a restructuring of the market, with more properties managed by professional entities,” Fergal said. “This has implications for both management standards and tenant experience.”
Galway’s private residential rental sector is in a state of evolution, shaped by regulatory reform, supply constraints, and broader economic forces. While recent measures have enhanced tenant protections and improved housing standards, they also pose challenges for landlords and policymakers.
Fergal explained, “A balanced approach is essential to ensure the sector’s sustainability. Continued collaboration between government, landlords, and tenants will be fundamental in achieving a vibrant and equitable rental market.”
Fergal concluded with a brash statement, “The one thing that would sort the rental supply in Galway city is if the authorities upheld the law with regard to short-term lets and only allow properties with planning permission to rent these units short-term.”
