Rents in the private sector rose by 5.8% nationwide in 2014, with rent for houses up 4.8% and apartment rents up 6.4%, as with the last three months of 2013.
Annual growth in the Dublin market was stronger, up 9.6% (€104), with Dublin house rents up 7%; up from €1,216 to €1,301, a rise of €85, and Dublin apartment rents higher by 10.9%; up from €1,051 to €1,166, a rise of €115.
In contrast, annual growth in rents for the market outside Dublin was more subdued, recording growth of 3.9% (€24) when compared to Q4 2013.
Rent for houses outside Dublin increased by 4.4%; up from €639 to €667, a rise of €28, while apartments outside Dublin experienced an increase of 2.9 %; up from €595 to €612, a rise of €17.
This data comes from the Quarterly Rent Index of the Private Residential Tenancies Board, which is compiled by the Economic and Social Research Institute. It is based on the actual rents being paid, according to the PRTB’s records, as distinct from the asking or advertised rent.
Looking at the actual price movements within the fourth quarter of last year, rents rose slightly in Dublin, notably in the apartment sector, while outside Dublin, rents declined.
However, the level of rent increase in Dublin, given the size of the Dublin market, meant that when trends for the whole country were measured, there was a slight overall increase in rents, up by 0.6%, when compared with the third quarter of 2014.
Rents in Dublin grew by 2.1% when compared with Q3, 2014. While rents for houses in Dublin increased by 0.4%, rents for Dublin apartments rose by 2.4%, compared to Q3, 2014.
For properties outside Dublin, rents in Q4, when compared with Q3 last year, were down 0.3%. Rents for houses outside Dublin recorded a quarterly decline of 0.7%. The index for apartment rents outside Dublin, however, recorded a quarterly decline of 0.4% in Q4.
In recent years rental growth has weakened in Q4, following high activity levels in Q3, consistent with the demand for student accommodation in that time period. These latest numbers for Q4 2014, are in line with these previous trends.
The Rent Index shows that, nationally, rents peaked in Q4 2007, before declining by 26% to their trough in Q1 of 2012. By Q4 2014, rents nationally were 17.8% lower than their peak. Rents in 2014 were 5.6% higher in Q4 when compared to the first quarter of the year. The strongest growth took place in the Dublin market, with apartments up by 10.5% between Q1 and Q4 2014, while house rents in Dublin rose by 6.5% over the same period.
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