Although private sector rents have continued to increase, the rate of growth moderated in the third quarter of the year (July-September), according to the latest Rent Index from the Private Residential Tenancies Board (PRTB). This moderation is a reflection of trends in the Dublin rental market, whereas the pace of increase in the rental market outside Dublin was stronger in Q3 when compared with Q2 of this year.
Rents in Dublin grew by 2.3% in Q3 when compared with Q2, 2014. While rents for houses in Dublin increased by 3.1%, rents for Dublin apartments rose by 2% quarter on quarter. The rent indices for properties outside Dublin show rents in Q3, 2014, when compared to Q2, 2014, were up by 2.5%. Rents for houses outside Dublin recorded a quarterly increase of 3%. The index for apartment rents outside Dublin increased by 1.8% in Q3 2014.
At a national level, monthly rent levels rose by 2.3% in Q3 2014 when compared with the second quarter. Looking at trends in more detail, monthly rents for houses were up by 3% quarter on quarter, while rents for apartments were 1.5% higher than in Q2, 2014.
Private sector rents nationally were 5.6 per cent higher in Quarter 3 this year when compared to the same period last year; up from €790 to €835, a rise of €45. Rents for houses were 4.3 per cent higher, up from €786 to €819, while apartment rents were 7.3 per cent higher than in Q3, 2013; up from €805 to €864.
Annual growth in the Dublin market was stronger, up by 9.5 per cent (€103), with Dublin house rents up by 7.5 per cent (€92) and Dublin apartment rents higher by 11.6 per cent (€122). In contrast, annual growth in rents for the market outside Dublin was more subdued, recording growth of 3.8 per cent when compared to Q3, 2013; up from €631 to €655. Again the performance differs by property type. Monthly rent for houses outside Dublin increased by 3.4 per cent (€22), up from €648 to €670, while apartments outside Dublin experienced an increase of 5 per cent (€30), from €607 to €637.
Looking at the longer-term trends, in Q3, 2014, monthly rents were over 17% lower than their peak in late 2007, with Dublin rents down 9.4% from peak. Rents for houses are 19.6% lower than they were in Q4, 2007. Rents for houses outside Dublin are 22.8% lower than their peak, while rents for Dublin houses are 8.4% lower than in late 2007. Nationally, monthly rents for apartments are 15.4% lower than in Q4, 2007. Apartment rents outside Dublin are 21.3% lower than their peak, while rents for Dublin apartments are 9% lower than in late 2007.
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