No growth for rental incomes, says Daft.ie report
Growth predicted for the rental sector in the first quarter of the year has failed to materialise, according to a new report from property site Daft.ie.
Rental incomes, which are 155 lower that the highs of 2002, look set to remain at the current levels for the immediate future, Daft said today, adding that the continuing rise in house prices means rental yields are falling.
In Dublin, northside area Howth has become more expensive than its southside mirror Dalkey, with rent in Howth increasing by 13.4% compared with a fall of 4.2% in Dalkey. Other northside areas such as IFSC, Fairview and Glasnevin also saw above-average growth over the last year. The lowest rents in Dublin are in West Dublin (Lucan, Blanchardstown, Clonsilla, Clonee, City West) while Dublin 4 remains the most expensive place to live.
Average rent for both Cork and Galway is 20-30% cheaper than Dublin with Cork rents slightly higher than Galway and a shorter time to let period of 12.4 versus 16.2 days.
Unlike the rest of the country, rent in Limerick has yet to experience any recovery with rents still falling after three years of steady decline.
In his report commentary, broadcaster David McWilliams said: "Specific market and financial concerns aside, the most important factor driving rents over the next year will be the immigrants in the Spar generation.
"They are the people that will generate extra demand, and it is the extra demand rather than the expected demand that will determine the direction of rents in the future."
