Rental prices increase in popular locations

RENTAL prices have begun to increase in sought-after locations.

Tue, 16 Mar, 2010 - 00:00

Niamh Hennessy

According to the lettings arm of Sherry FitzGerald there are tentative signs of stability emerging in the Dublin city centre lettings market with the combination of a tightening of supply and resilient demand resulting in more stabilised rents.

The firm said highly sought properties are achieving stronger rents than in the closing months of 2009.

A one-bedroom apartment in the IFSC is achieving on average €1,000 per month, an increase of more than 10% on levels achieved in the autumn of 2009.

Rental levels of two-bedroom apartments in the IFSC have increased by more than 15% since the autumn, with rents now at an average of €1,400 per month.

In the same location three-bed family homes are achieving monthly rents of between €1,200 and €1,700. This compares to rental levels of €1,100 and €1,600 in autumn 2009.

According to Sherry FitzGerald the stock of three and four bedroom family homes and well located one and two-bedroom apartments in Dublin city centre have tightened over the past six months fuelling this increase in rental levels.

It said poorer located and tired property in need of repair are taking much longer to rent with lower rental levels achievable.

Eileen Sheehy of Sherry FitzGerald Lettings said: “The market has strengthened considerably in recent months.

The combination of the fall off in the “buy to let” market and the resilience of demand has resulted in an increase in rents for quality properties in central locations.

That said, tenants remain vigilant and are quite rightly shopping around for good value and landlords are responding accordingly. As such properties in need of refurbishment or not accessible to public transport are no longer attractive to tenants.

CSO figures on privately owed rents show while rents have fallen by 10.9% nationwide in the 12 months to February 2010, the market has remained stable since December 2009 with rental depreciation of -0.7% in the two month period.