Students face soaring rents in Dublin due to shortage of properties
Property shortage had led to 7.5 per cent increase in Dublin rental prices
With the first round of offers from the Central Applications Office due to arrive by post tomorrow morning, Daft.ie is reporting a 43 per cent reduction in the number of properties available to rent in the capital. Photograph: Getty Images/Fuse
College-bound students looking for accommodation in Dublin are facing a 7.5 per cent increase in rental prices, according to a report by property website Daft.ie.
With the first round of offers from the Central Applications Office due to arrive by post tomorrow morning, Daft.ie is reporting a 43 per cent reduction in the number of properties available to rent in the capital.
The drop in accommodation options is said to be driving an increase in prices, with just 2,394 properties available for rent at the start of August, compared with 4,212 this time last year.
Shortage of properties
Nationwide, there were one third fewer properties available on August 1st, compared with the same date last year.
The average price for a single room in Dublin city centre is now €433 per month, up 6.9 per cent from a year ago, while the price for a double room is 4.4 per cent higher, at €521 per month.
Compared with their lowest point in late 2010, overall rents in the capital are now almost 10 per cent higher.
Ronan Lyons, an economist with Daft.ie, said the 7.5 per cent rise in rental prices represents the fastest rate of rent inflation since mid-2007, and reflects tight supply in the Dublin market.
He said demand for accommodation remains strong in urban areas, especially in Dublin. “As a result, with properties shifting faster, students may feel more rushed when looking for accommodation for the year ahead.”
He said that while a group of friends renting a four-bedroom house in Dublin might have to pay 10 to 15 per cent more than last year, their counterparts attending colleges around the country will probably have their rent unchanged.
Prices have risen annually in Cork and Galway by 2 and 3 per cent respectively, while staying stable in Limerick and falling by nearly 3 per cent in Waterford.
The largest percentage change was in Letterkenny, where the price of a double room is now €249 per month, 7.8 per cent higher than a year ago, while accommodation in Cork commuter towns saw the largest decline, falling by 10.7 per cent for a single room.
Nationally, rents rose by an average of 1.3 per cent quarter-on-quarter, marking four successive quarters of rent increases. The average rent for a one-bedroom apartment is now €825 per month compared with €792 a year ago.