Latest Daft.ie report indicates stall in rental recovery
Brian and Eamonn Fallon, Directors, Daft.ie with David McWilliams, Economic
Commentator and Broadcaster
13th September 2005, Daft.ie, Ireland's biggest property site, today released its Daft Report for Quarter 2, 2005 providing an analysis of recent trends in the Irish rental market and an overview of rental performance across all major Irish cities.
Key findings in the report indicate that while the Irish rental market has stabilised following two years of decline, the growth predicted in Quarter 1 has failed to materialise. As a result rental incomes look set to remain at the current levels for the immediate future. Rents are still 15% lower than the highs of 2002, which compounded by the continuing rise in house prices means rental yields are falling. As such, the attractiveness of residential property investment is waning. This is in contrast to the current surge of Irish people investing abroad.
Included in the report is a guest commentary from David McWilliams, Economic Commentator and Broadcaster who refers to Ireland's renting population as the Spar generation. He explains, "Given that hot food sales has increased by 36% in the past year, if you want to see the future of the Irish rental market, go no further than your local Spar. It is the Spar generation that has helped the Irish rental market to stablise after two years of decline."
The report provides a detailed analysis of average rents, time to let and vacancy periods across the country including a breakdown by postcode in the Dublin market. In Dublin, northside area Howth has become more expensive than its southside mirror Dalkey, with rent in Howth increasing by 13.4% versus 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.
Regarding time to let, Dublin 6 (Rathgar, Rathmines, Ranelagh) has overtaken Dublin 2 as the easiest place to let with an average time to let of 7.3 days versus 8.4 days. Interestingly, rooms in shared accommodation are let 33% fastest than rental properties. This is almost certainly related to the requirement to meet monthly mortgage payments.
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.
Commenting on the launch of the report Brian Fallon, Director, Daft.ie said "Following on from Quarter 1 the Daft Report has become an essential tool for anyone in the Irish property market and is the single largest source of unbiased data available in the rental market in Ireland. The Quarter 2 report highlights a number of interesting changes in the marketplace, particularly in the Dublin area"
In his report commentary, David McWilliams adds "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."
Daft.ie is Ireland's biggest property website with over one million visits per month and in excess of 35,000 properties on the site at any one time. Since its inception in 1997, Daft.ie has become synonymous with renting property in Ireland. Each year over 75,000 rental properties are advertised on Daft. These properties are sourced from over 900 estate agents and 40,000 registered landlords around the country.
For further information please contact:
Jennifer Mooney, Marketing Solutions,
053 26789, 087 833 6450
Notes to the Editor
Daft.ie, Ireland's biggest property site has been providing low-cost online advertising to the Irish property market since 1997 with a primary focus on first-time-buyer properties, investment properties both home & abroad and residential property to let.
Established by two brothers Eamonn and Brian Fallon, Daft.ie has become the country's biggest property portal with over 35,000 properties available for sale or let at any one time. The site currently delivers 24 million pages of properties a month to over one million visitors. Eamonn and Brian were also finalists in the 2004 Entrepreneur of the Year Awards.