Rents predicted to rise as more hold off buying
Residential rents in the main cities could go up by as much as 14% by 2013, it has been claimed.
Figures from real estate firm Savills show that after dropping by 25% from 2008 peak levels, rents are now on the rise again.
The typical rent for a 2-bedroom apartment in Dublin ranges from €900 to €1,200 per month, while in Cork those prices are between €800 and €1,150.
“Despite a significant increase in the supply of rental accommodation into Ireland’s rental pool over the past 10 years, when over 150,000 additional properties were supplied to the rental market, shortages are now evident in the main cities," said Ronan O’ Driscoll of Savills.
“We are seeing a shift back in time where now for young couples starting a home, the norm is to rent, rather than to buy a property.
"Property values are already beginning to bottom out in many locations, and although people are recognising the value in the housing market many cannot secure the finance to buy.
"They will therefore continue to rent in the medium term until the supply of mortgage finance improves. The two are inter-related and when mortgage finance begins to improve again, there will be a move back to purchasing."
