One of the country’s largest private housing landlords is charging rents of between €1,111 and €2,600 a month for its apartments.
Profits at the stock market listed I-Res REIT, a property fund that focuses on owning and renting apartments in Dublin, rose over 25% to €31m in the six months to the end of June from a year earlier.
Net rental income increased to €17.1m from €14m, “driven by strong occupancies and higher average monthly rents”, it said.
The Government’s restrictions on rent hikes cap annual increases at 4% a year for three years. Exemptions to the Government’s rent rules include homes “that have not been let at any time in the previous two years and/or have been substantially refurbished”, it noted.
The trust owns and manages over 2,380 apartments in 19 blocks in Dublin.
Average monthly rent across the 2,380 apartments increased 4.3% to €1,459 from €1,399 a year earlier “due to rental growth on renewal and turnovers”.
The apartment blocks include its largest of 442 homes at Tallaght Cross West in south-west Dublin, where it charges an average monthly rent of €1,217. Its cheapest average monthly rent of €1,111 is at Priorsgate in Tallaght. It charges a monthly rent of €2,600 at The Marker, an 84-apartment complex in the Dublin docklands. Two years ago, the average rent at The Marker was €2,283.
It said about a quarter of all its apartments either “renewed and/or turned over”, and almost 99% were let.
I-Res has about €140m to spend on acquiring new apartment blocks but warned about “unattractive prices for the company”.
Chief executive David Ehrlich said the company is looking to convert and increase the intensity of its housing units. “While taking longer than acquisitions, these prospects are expected to be significantly accretive to [earnings]. In this context, I-Res can make a not insignificant contribution to the housing crisis,” he said.
“Despite a recent uptick in completions, the most striking feature of the Irish housing market remains a significant mismatch between supply and demand,” it said.
“This situation looks set to continue to the end of the decade at least.”
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