It appears that dire warnings last year that the rental market would be swamped by Nama and receiver properties and rental values would plummet seem to be unfounded – so far. A new report by Savills has found that the number of empty new homes in the Dublin area has dropped by more than half in the past 18 months, from 11,000 to 5,400, and this is in line with recent Department of Environment figures.

There are 700 unsold new houses and 4,600 apartments. It seems that developers, banks and receivers are renting out most properties and the balance has been sold. Rental values in Dublin are stable, and demand remains very strong, and in some areas exceeds supply.

This seems to be in line with feedback from other letting agents, who say they are struggling to meet demand in some areas. In our feature today on young Euro-techies working in Google, Facebook, LinkedIn and other technology companies, seeking accommodation in the city centre and Dublin 4 (see page 5) the consensus seems to be that, despite the proliferation of apartments in these areas, finding a place to live close to work isn’t easy.

According to Ronan O’Driscoll of Savills the health of the rental market is down to the perception that puchase prices for apartments will continue to fall, and the severe slowdown in flow of new mortgages.

Average rents for a typical furnished two-bed apartment in Dublin are €1,150 per month, down 20 per cent from peak values.