In Dublin, rents rose by almost 15% across the county in the last quarter of last year with the City Centre recording the strongest growth at 15.5%. The average monthly rent in Dublin City is now €1,655 per month.
This is according to the latest Daft.ie Irish Rental Report for the last quarter of 2016 which was released today. It shows that residential rents rose at their fastest annual rate, 13.5% nationally, since the series began in 2002.
The figures show that few regions were spared the strong rental inflation with 45 of the 54 submarket in the analysis recoding double-digit rental inflation. On a regional level, only Connacht saw
inflation of less than 10% per annum.
Rents in Dublin South City rose by 13.9% in 2016 to an average monthly rent of €1,763 per month and in Dublin South County rents rose by 14.2% to €1,855 per month.
The strong rental growth across Dublin means that rents are now close to 65% above the market trough of 2010 and 14% above the previous cycle peak at the start of 2008.
Goodbody Stockbrokers have today warned that lack of supply remains the problem with poor planning playing a major role in this dysfunction.
They beleive that recent policy, including the Government’s recently published National Planning Framework, will fail to stimulate housing where housing demand exist. Goodbody claim the new policy attempts to redistribute population growth around the country, rather than allowing growth to occur naturally where jobs growth is strongest.
According to Goodbody Stockbrokers, "Dublin planners need to address archaic building height restrictions which have pushed Los Angeles-style urban sprawl and made developing viable public
transport inefficient. High density building and efficient public transport systems go hand-in-hand, and one will not succeed without the other."
They conclude, "Such changes will open up new sites and locations for providing homes, and stimulate building on marginal sites where current planning restrictions mean residential development may be unviable."
Source: www.businessworld.ie
