Nationwide rents rose by half a per cent (0.5 per cent ) on average in the first three months of 2011, according to the latest report published by the property website, Daft.ie The average rent nationwide now stands at €825, 25 per cent below the 2007 peak.
In Connacht, rents were largely static in the first three months of 2011, falling by 0.2 per cent, compared to a fall of more than two per cent between September and December. The average rent in Mayo in the first quarter of 2011 was €580, a fall of €135 from the peak.
Rents have been largely static since early 2010, however the stabilisation nationally hides different regional trends. In Cork city and some parts of Dublin, rents are now up to three per cent higher than the same time last year, while in Galway city they are largely stable. In Waterford city they are six per cent lower, while elsewhere in the country rents are three to four per cent lower than this time last year. The total number of properties available to rent nationwide has risen slightly but at 17,000 is well below its high in mid-2009 of almost 24,000.
Commenting on the report, Ronan Lyons, economist at Daft.ie, said: “The latest figures confirm the first signs of stabilisation in rents which emerged from Dublin and Cork in early 2010. However, while rents are rising in some urban centres, there is still significant overhang in other parts of the market which is pushing down rents. What we may be seeing is the emergence of a two-tier rental market, reflecting different levels of property oversupply around the country and indeed different labour market outlooks.”a