Ireland's largest landlord says rents are 16% above its €1,688 average   

IRES Reit says that, with an occupancy rate of 99.3%, practically all of its apartments are permanently rented

Property firm IRES Reit, one of the State’s largest private residential landlords, has said it is securing an average rent of €1,688 a month, that’s as much as 16% below market rents, throwing more light on the extent of the housing crisis.

The property firm has almost 4,000 apartments across 37 buildings in Dublin and Cork.

With an occupancy rate of 99.3%, all the property firm’s apartments are all but permanently rented even after accounting for short term tenancies.

In its latest earnings statement, IRES said the average rent of €1,688 at the end of June was up almost 3% from a year earlier.

However, the property firm said it estimates the average is 10% below market rents as identified by the Residential Tenancies Board (RTB) across the State, and 16% below market rents in Dublin.

Its overall revenue rose 6.7% to €42.1m for the first six months, net rental income increased by just over 4% to €32.6m, and its profit for the period of €22.9m compared with €27.4m at the same stage last year.

“Our rental growth of 6.7% in H1 2022 is driven by two sources — renewals which are capped per legislation and delivery of new schemes with rents in line with current market,” IRES said.

“Our average rents across our portfolio are estimated at 10% below market rents, and in Dublin where most of our properties are located our average rents are c.16% below the recent RTB quarterly index,” it said.

Rent increases are capped in most urban centres but “the regulatory period continues to the end of 2024, however, the 2021 Amendment Act does make provision for the operation of the new rules to be reviewed within 12-15 months of coming into effect”, IRES said.

Around 2,000 apartments, or half of all its units, are located in North and South Dublin. It also has six apartment buildings in Dublin city centre, and one building in Cork of 50 units.

IRES said that private landlord and builders will have a significant role to play in helping the Government meet its house building targets.

“Housing in Ireland remains challenging, primarily due to a significant lack of supply, and so we are pleased to be adding much-needed new homes to the market,” chief executive Margaret Sweeney said.