Rent inflation and the pull of cities

Ronan Lyons, Economist

11th Feb 2013

Ronan Lyons, Daft's in-house economist, commenting on the latest Daft research on the Irish property market.

Rent inflation and the pull of cities

For much of the past five years, the focus on the negative consequences of falling properties values has been so pervasive that the fact that accommodation is a cost - and rising costs are a bad thing in general - has largely been forgotten in public discourse. It is a point that policymakers forget at their peril, though. Certainly, from the point of view of those who bought between 2003 and 2008, the fact that property values have fallen by more than 50% is terrible news, as it means their wealth has been halved, while their liabilities have remained constant.

But from the point of view of the generation that is yet to buy, those in their 20s and early 30s, the return of property prices to more sustainable levels is hugely welcome. And what is good for the next generation is good for Ireland as a whole. Wages have to reflect the cost of living and the single biggest item in the Irish household's shopping basket, so to speak, is accommodation. According to the CSO, housing costs make up 18% of the typical family budget. So when prices and rents were falling, that eased significantly the wage demands of those entering the labour force. Their after-rent income was greater, even if the amount they were being offered was less than their counterparts starting work in 2005 or 2006.

Put another way, the fact that rents fell by 25% between 2007 and 2010 was a huge boost to Ireland's competitiveness. Unfortunately, it is a boost that is long over. Rents are rising again. The figures from this, the latest Daft.ie Rental Report, show that rents nationally rose by 2.2% during 2012, compared to a fall 0.3% in 2011 and a fall of 2.5% in 2010. It is clear now that the period of sharply falling rents was confined to 2008 and 2009 alone.

This may look odd to those unfamiliar with the rental market but familiar with the basics of economics. It seems plausible to think that with all the surplus properties from the bubble years, there is plenty of supply, while demand is at best treading water. But the property market is as much about location as it is about supply and demand. Or, put another way, Ireland is home to more than one property market and that is why we are seeing rising rents again - it is rising in some places but not in others.

So, at one end of the spectrum is Dublin. There, rents are about 6% higher now than two years ago. On February 1, there were just over 2,100 properties available to rent in the capital. In the middle of 2009, there was almost four times that amount. Looking back over the records to the start of 2006, there has been only one period when there were fewer properties sitting on the rental market than now - February to May in 2007 - and then rents were increasing at 13% year-on-year.

At the other end of the spectrum are Ireland's smaller rental markets. In Connacht and Ulster, there are five times as many properties available to rent now as there were five years ago. With landlords fighting for the attention of prospective tenants, it is not surprising that rents in Connacht-Ulster fell 2.2% in 2012, in line with the fall of 2.0% in 2011.

If it is the case that during bubbles people lose the run of themselves, then the crashes are when people quickly realise what's important. One remarkable feature of Ireland's bubble was the ability for people to get jobs pretty much anywhere - you could live in a small town and not worry about work. Since the crash, though, it is apparent that Ireland can no longer defy what is the modern economic equivalent of the law of gravity: the pull of cities.

Population density versus change in rents

The graph shows the change in rents in 2012 compared to population density, across Ireland's cities and counties. The upward trend line shows a clear divide along urban-rural lines in the current rental market. In the biggest cities, rents are rising; elsewhere they are not.

And so it makes sense to talk about ghost estates and the need to build in the same country. Ireland's surplus properties are overwhelmingly outside its main cities. But those starting their careers now are looking to cities to provide them with employment. For some, even Dublin is too small a scale and so they head to London and further afield. But for those staying Ireland, it is Dublin, Cork and Galway - urban centres and global FDI hubs - that appear attractive places to live.

The evidence from the rental market is that Dublin in particular is facing if anything a shortage of places to live, not a glut. If NAMA is sitting on stock in Dublin, that stock is needed on the market, sooner rather than later. According to official figures, however, there are a very small number of homes in Dublin that are both fully built and vacant. In fact, roughly half of what are termed ghost estates units in Dublin are units on paper only - they are just at planning stage.

Without new supply in Ireland's cities, though, rental inflation may be here for a while. And with adverse consequences for Ireland's competitiveness.

HIGHLIGHTS:

Rental Price Index
Rental Price Index

Stock and flow of rental properties
Stock and Flow of Rental Properties


SNAPSHOT:

Snapshot of Asking Prices Nationwide
Snapshot of Rents Nationwide

Discuss This Article

  • Re: The Daft Rental Report Q4 2012

    Posted By: David Date: Monday February 11, 2013 @08:04AM

    As with the most recent sales report, the updated rent index doesnt tally with previous report in that the month-on-month changes are very different to previous reports. Is this an update to the datatbase or methodology?

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Daft Report Team Date: Monday February 11, 2013 @09:21AM

    Hi David,
    Yes, with the launch of the CSO Index (which uses a slightly different technique to the old ESRI index), as well as the Price Register and the Census 2011 figures (which are used to give weights), the specifics underpinning both sales and rental reports has been updated, so that what is released is comparable to the CSO index.

    A full working paper is due to be relased by mid-year but the key features are that it uses a twelve-month rolling dataset, with controls for time, type and size for each of five main regional markets (Dublin, other cities, Leinster, Munster and Connacht-Ulster). As with all other leading indices nationally and internationally (including CSO and ESRI-PTSB), the broad methodology used is the hedonic price equation, which breaks the price (or rent) of a property down into its constituent components.

    Hope that helps and thanks for asking.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: NAMAwinelake Date: Monday February 11, 2013 @08:46AM

    Well done to Daft.ie and Ronan for producing the report and analysis. Although it examines asking prices, the CSO says actual private rents are up 3.5% in 2012 which seems to confirm a trend of modest rising rents nationally. And the higher than average increases in Dublin seem rational.

    One thing though. NAMA is not holding any stock of completed property back in Dublin. The Agency has 12,000 properties (it has sold 1,000 to date) with 9,000 rented and the rest being sold. There is no massive pool to be released on the market.

    What NAMA is doing is funding the construction and completion of some properties eg at Dun Laoighaire Golf Club, Beacon South Quarter and Elm Park. IBRC was having 50 apartments completed beside the O2 in north Dublin docklands. Problem is that current construction costs and rents mean it is generally not feasible to build, so either costs come down, rents go up, or housing demand reduces. Looks like the main pressure will be on rents rising,

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Paul Date: Monday February 11, 2013 @01:53PM

    Not true, next to the o2 there is an entire block of fully completed apartments in Nama, 1/3 are being rented 2/3 lie empty, if rents are that strong why not rent them all? Demand is not that strong anymore because of the high numbers emigrating.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Monday February 11, 2013 @10:58AM

    Great that rents have stabilised. Being a landlord hit with all the extra charges this will be a boost. 2013 will be a good year.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: RoadSweeper Date: Monday February 11, 2013 @02:19PM

    While articles on daft tend to gloss over/ ignore the the doom and gloom which is namely that property prices are going (and need to) to fall at least until the end of 2013, and a lot of the comments that come out on daft seem to be from those in denial or with a vested interest in 'pretending' that the housing market or rental market is in good shape (take a look at the comments on the daft forums from 2007 just before and during the financial crash), I find it suprising, that the comment above seems to think that rents have 'stabalised'? And that this is good news for landlords.?

    In a crisis people will leave the countryside and flock to the cities or of course in the Irish context emmigrate. If rent prices continue to rise in the capital and assuming they are in Cork and other large cities, while tumbling in the countryside, how is this good for anyone? Employers will face pressure to increase salaries. Even for the landlords themselves eventually. They will be faced with tenants who cannot pay, and while short term the landlord in Dublin may be rubbing his hands together, longterm and for the economy as a whole I don't see anything positive while property prices are over priced. IF (landlords) they believe that the economy is going to pick up and they borrow money to maybe even buy more property then they will be creating a new bubble. Since the vast majority of the population cannot buy. Tenants are often tenants because they cannot buy. Some may say they choose to be tenants because its 'easier' but they won't be saying that if rents continue to rise for two years. They will quit the place and commute. The landlord will have an empty apartment How can the tenants put money aside in a period of such uncertainty in order to buy for themselves? Landlords may well buy up stock iin Dublin. I feel there is a risk of a rent crisis if this were to continue. The truth is property is not a good investment. Far better to look elsewhere to build wealth.

    In the article the author writes that:

    "But from the point of view of the generation that is yet to buy, those in their 20s and early 30s, the return of property prices to more sustainable levels is hugely welcome."

    Well that's one way of dressing up an economic disaster. Its a crash, it is not just a return to sustainable levels. If no one has cash to buy andthe employment situation does not improve, then in order to be ''sustainable'' the house prices must fall further. The fact that Dublin will always attract property investors and landlords who may well be able to currently charge high rents, is rather limited.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Marc Date: Monday February 11, 2013 @03:08PM

    The only problem with all this real estate market boom is that poor tenants end up becoming victims of careless landlords and dishonest agents.
    Bottom line: more work for the Tenancy Board.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Tom Date: Monday February 11, 2013 @08:05PM

    Historically rents in dublin were far higher than in comuter belt and beyond This difference reduced during the boom but is now returning. This needs to happen as the cost of units in Dublin is greater for example the new property tax.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Monday February 11, 2013 @09:26PM

    One question bothers me.

    If you factor all costs associated with house building it appears that the building cost is more expensive than the sale price.

    The last two reports by Daft point to a tightening of stock in urban areas especially in Dublin.

    If stock is falling there is a natural tendency to produce enough to meet demand.

    It seems somewhat perverse that the conditions that caused the building boom have caused restrictions that prevent a sensible building programme to meet shortages.

    House building to meet shortages (its hard to believe we're talking about house shortages) will be constrained by external costs which are independent of house price expectations.

    These are material costs driven by oil prices and government costs both of which are independent of price expectation.

    The external costs allied to restrictive money lending and low expectation of sale prices will deactivate the market until it changes.

    The result will see even tighter stocks and rising rental costs.

    It's the start of a new cycle

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Monday February 11, 2013 @09:32PM

    For all those gloom and doomers out there...maybe you should emigrate and let the rest of us get on with our lives....fine we had a recession and a big crash but all crashes take about five years and it has been five years..a lot of people are so narrow minded and insular that they think Ireland is a special case..well it isn't and wasn't in the 70s either when we had our boom and 80 s when we had our bust and our next boom is already forming now ...yes now ...and will peak in the 2020s and so the cycle will go on as it always does...this is capitalism....house prices..rents all going up in the next five years guaranteed...

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Monday February 11, 2013 @11:25PM

    rent rises, looks like greed is creeping back in again ,just what got us in the mess in the first place and the little guy ends up paying once again
    sum landlords and agents if not all have no shame its digusting

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Realist Date: Wednesday February 13, 2013 @09:30AM

    The reality is that the gross yield on rental properties has to be over 10% given the marginal tax rate imposed on rental income, which will now be subject to PRSI in 2013, so in effect circa 55% of rent will be handed over to the taxman, in addition there is the €200 NPPR charge this year, plus anupcoming property tax and water charges next year. So say (for arguments sake) you get a gross yield of 10%, the net yield we could argue would be circa 4.5% (assuming deprecation tax benefit taxes out the different property taxes being imposed),- when this return is compared against the current marginal borrowing cost of investment mortgage / property of circa 5%, the investor in new property is still losing money, as the net income would not be sufficent to pay a principal and interest mortgage. So this leaves the current sales market open to cash rich buyers, who want a return in excess of (now rapidly) declining deposit rates on offer from banks here. Whether this is a wise choice for this cash is opn to debate, but given a 10 - 15 year timeline, it probably is. Notwithstanding all this, facts are that rents are rising, I've seen rental supply collapse in areas close to Dublin city centre, in fact it is now close to levels seen in 2007, when rents were circa 33% higher than now and I would expect rents to increase by this amount over the next 36-48 months on the back of an improving economy. Although the London market is an entirely diffent animal, rents there have risen over 40% in the last three years and this is midst a so called recession - the same could happen in Dublin, given limited supply coming on stream and a growing service sector

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Wednesday February 13, 2013 @04:41PM

    I have a query in relation to the headline figure of the average rent nationwide between July and September was €808 and the previous quarter being €790. Pg 5 of the report. Are these revised figures as the previous Daft rental report for Q3, gave the figures to be €820 for the period July-September and €809 for the previous quarter. pg 5 of report. Can you confirm if these figures have being revised downwards and what bedroom capacity are these average rents for?

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Landlord Date: Wednesday February 13, 2013 @07:13PM

    Just in reply to the above regarding the new water charges.....the water charge has to be paid by the tenant and not the landlord as in all other countries where they have water charges...it does not make sense for a landlord to pay water charges as the whole reasoning behind water charges is to stop people wasting water....if the tenant does not pay the charge they will continue to waste water..... i.e. they will have no incentive to conserve...this should be pushed by all landlords and not seen as a new tax for landlords

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  • Re: The Daft Rental Report Q4 2012

    Posted By: John Waters Date: Thursday February 14, 2013 @04:55PM

    just a point of note from a person who lived in UK, Italy and several cities across Germany.
    Average rental and purchase prices in Ireland around 2005, came to a European level...they are now at a level far below the poorer parts of Europe. This cannot be good for the ecconomy and anyone who wishes to see further decreases as against increases, is most probably also a gloater.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: RoadSweeper Date: Saturday February 16, 2013 @12:02AM

    If average rental and purchase prices 'came to' a European level in 2005, as you put it, (others might say 'pushed to'), but have since been decimated to levels that they would have been at had there been no 'celtic tiger' ( & associated lending at impossible levels & property bubble) do you not think that infact the 2005 rents and property prices were not realistic? Are you seriously comparing the Irish economy & associated problems of mass emmigration,lack of industry, to two economic superpowers, France and Germany? Rent prices aren't causal in terms of economic growth, more symptomatic of malaise . Anyone who thinks that rent rises , (which is at the moment manifesting itself in a few greedy landlords hiking prices in Dublin) will spur on the economy is probably blinded by greed.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Massimo Date: Monday February 18, 2013 @02:13PM

    Just my piece of mind/ experience and a quick reply to a point made by John Waters (you were the last of the many posts I read)

    I also lived in Italy, France and Spain in Europe and Canada as well. I don't believe property value is way below the EU average. In Ireland there is a serious problem regarding urban planning. In the continent you may pay lot of money to live, let say, in the centre of Paris but if you live anywhere in the suburbs you will have the same services (shops, schools, bars, public transport etc). Here planners followed an American model that created all those sad, desolated dormitory estates.

    On top of that, in the continent, tenants rights are a very serious matter: not only there is a legislation in place but the law is also enforced. Landlords are obliged to provide a sound, habitable accommodation otherwise they will incur serious fines. So there are issues regarding getting what you pay for in this country.

    Here things have slowly began to change only recently. One of the issues landlords are now required to address, when putting a property on the market, is the BER evaluation and they are required to produce the resulting BER rating cert to the prospect tenant. Still most of them are not doing it. The place I live in for instance has been painted 2 months ago (when I moved in) and it's already covered in black mold and the landlord doesn't really want to do anything about it. I pay over the average price, mainly for location and I don't mind. I don't want a 50 inches plasma screen I just want the basics. The landlord never gave me a BER rating cert and I had the feeling that if I kept insisting he would have just sent me off and got someone else instead. There isn't any government institution this people can be reported to, so it's a free for all. There is a legal framework but the law is not enforced. Also, there are several safety issues regarding rental properties around the country that should be addressed. A place with wiring and piping that is not up to legal standards should simply NOT be rented. If a landlord keeps doing so he should be fined and even sent to jail.

    You mentioned Italy and France. In both countries there are a tenants unions (sunia in Italy and lacnl in France) that have dedicated advisors and lawyers that defend the rights of tenants. I believe Ireland badly needs something like that.

    I don't think rents are below the EU average, on the contrary I think we are way overcharged for what we rent. We also need to introduce a different way to measure rent, based on square footage (or metres), quality of the property and quality of furniture (in case it's a furnished place) as well as BER rating and location.

    I can't see the situation improving (for both tenants and landlords) until such measures are introduced. Pleasant side effects may include the creation of jobs as well as life improvement for Irish tenants which is not a small thing.

    Regards,

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Monday February 18, 2013 @02:54PM

    Hi massimo,

    If there is mould inside your apartment it is most likely your fault for not airing it. Fine if there is a leak from the outside bit u doubt it. You are probably not opening the windows and cooking and showering with no where for the moisture to go. How can that be the problem of a landlord to police you to make sure you use the extractor fan and bathroom fan and open the windows. I bet you dry your laundry inside too! And then expect the place to be dry and mould free.!!!

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Monday February 18, 2013 @11:21PM

    Hi anonymous,
    good thing you didn't bet on any of the above. Windows are open everyday especially when cooking and showering, clothes are dried either on the line or in the dryer and the window is open when it's running. The house is always warm and cozy. It's badly insulated and the damp comes through walls, joints, doors and windows. Give people the benefit of the doubt before pointing the finger. Bet you're a landlord.

    PS: I'm also generally speaking happy where I am that's why I'm staying. I used my recent experience as an example to open the debate regarding value for what you pay, especially in cities. I won't even start talking about previous rental experiences I had.

    • Reply to this message
  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Tuesday February 19, 2013 @11:22AM

    Hi massimo,

    Not a landlord but working in insulation and the more insulation there is the damper a place gets unless its vented.still convinced you don't dry the place out after cooking showering etc

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Thursday February 21, 2013 @01:32PM

    Hi Anonymous insulator,

    Well... you are still wrong and I'm still convinced that you are a landlord. Your answer is a typical landlord’s answer that refuses to take responsibility by trying to avoid carrying out the work required to keep the place up to standards, of course while blaming tenants for their supposed lack of care.

    It is very important to consider several aspects when detecting the causes of dampness. Ventilation is without a doubt one of them (and the house should be ventilated in itself) but drafts around windows and doors as well as lack of insulation are others as well as exposure to wind, bad foundation and so on.

    Either way you prove the point I was trying to make with my example (one of many I could have brought up) that relates to the condition of rental properties, both in terms of value for money and in terms of health safety for the occupiers and surrounding neighbours. The problem is that rent is increasing and quality is decreasing. The job is done quickly and badly. This is due to the fact that landlords are not obliged by the government to take responsibility for the properties they rent out and to the fact that too often contractors lack the required skills and knowledge to address building related problems. The government, in this case I believe the Health Board, should step in and introduce a sort of NCT for houses: if a property is not approved (again in terms of health and safety, BER etc) it can't go on the rental market, full stop. Again as I said I believe such measure would create jobs and improve the quality of life of the many Irish tenants out there.

    Regards,

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Derry Scully Date: Tuesday February 26, 2013 @05:30PM

    New figures from the Society of Chartered Surveyors Ireland (SCSI) show that building costs continued to recover slowly last year.

    The Society of Chartered Surveyors Ireland Construction Tender Price Index, which has been running since 1998 and is the only independent assessment of construction tender prices in Ireland, shows that construction tender prices increased by:
    •1.8 per cent in the second half of 2012
    •2.8 per cent for the year as a whole

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Thursday March 7, 2013 @09:53PM

    Should the Rental Price Index read "2010 average = 100" rather than "2007 average = 100"?

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Jim Murray Date: Thursday March 14, 2013 @12:01PM

    Some buyers will clearly wait to see what happens and will pay increasing monthly rents to landlords in the interim, often for poor quality accommodation, since builders have responded to market changes by constructing no new homes.

    However, as the pent-up demand for housing increases, buyers will realise, in considerable numbers, that they are only delaying the inevitable and will look to purchase their own homes, especially when the difference between mortgage payments and rents narrows, as is now occurring.

    At that stage (late 2014), prices will jump as a result of the time taken for builders to respond to the market and buyers, fearing that prices will escalate as before, will again make higher offers for the limited housing available, thus further driving the market upwards.

    As current market conditions are purely temporary, those awaiting further price reductions will be disappointed and whilst the situation would be different if housing supply had remained constant or if immigration had reduced, neither occurred, on which basis, the supply and demand equation still endorses the likelihood of higher prices.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: John D Date: Tuesday March 19, 2013 @12:09PM

    Listen here lads, I'm an old hat at this, and I can tell you that there's not a snowballs chance in hell of house prices going significantly down in the medium term. So if you are planning on buying, do your homework, know your prices, take a deep breath and GO. On many occasions - most notably in 2000, mid-range house prices fell by 20% - and not a squeak from the media. The dot com crash caused a huge loss of confidence, but we all recovered and got on with it........Within months things were flying again. I watch prices all the time, as I have some properties and am always interested. On particular roads, prices rise and fall every year. For example, on Richelieu Park Sandymount, you could argue they dropped by up to 30% last year; but alas, get a few people in the auction-room, and an unpanicked seller ( the key to making money in this game ) and up they go again.

    When I started in the eighties, interest rates were a mere 18%, house prices were falling, there was no stampduty ( or it was so low I don't remember);income tax was over 70%, the country was awash with debt; 50% of graduates were unemployed. The market even grew in those times, so I don't see it falling now.

    Some free tips:

    1. Buy the very best you can afford and you will somehow manage the repayments.

    2. Old is nearly always better value than new - but be patient, you may need to renovate over time.

    3. Period properties have an edge over new builds; and relative to say London, there are very few of them in Dublin.......

    4. Don't listen to anyone who says London is cheap: when you factor in like-for-like areas, its not. The equivalent of Rathgar in London is almost twice the price per sq. ft.

    5. If buying abroad, be extra careful. Research the economy, - and most importantly, what are the locals paying in rent or purchase prices? Property looks real cheap in Prague when you are buying, but try selling there? Property in the South of France looks cheap, but I have seen it take over a year to sell good properties there. The underlying econommic performance of a country is the main determinant of house prices.

    6. If buying commercial property, be even more careful. I know people who lost serious money in Dublin commerial property in recent years ( even with the boom ...)

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Thursday March 21, 2013 @09:59AM

    A Deutsche Bank report from last year showed that in 2012 the number of empty houses amounted to 289,451.
    I think it will be a while before all the vacant properties are filled again in this country, especially considering the precarious professional situation people are in and the fact that mortgages are hard to get. I think we can safely talk about two markets here, Dublin and the rest of the country.
    For sure the market will fluctuate up and down over the next few years but it will never reach the height of the boom.

    I concur with some of the previous comments regarding the quality of buildings in Ireland and the rent charged for substandard accommodation. The construction workforce should be employed to improve the quality and habitability of existing houses. In that way we can hope to reach European Standards in a few years.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Matt Date: Thursday March 21, 2013 @05:45PM

    I believe that in five years time, people will look back at
    2012 and 2013 and be saying " Wow that was a great time
    to be buying property! I wish I had bought more then!"

    So the time is now, whilst the country is on sale. First you
    need to decide where to buy your investments. Should it be
    close to where you live? (a good place to start) or some other
    location which may stack up better and give you a higher
    return on investment.

    Once you have decided where you want to invest, you need
    to get to know your local area in terms of values and rentals
    so that you recognise a good deal when you find it. Checking the
    internet and literally walking the streets can be a great way to
    familiarise with "your patch'

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Monday March 25, 2013 @03:16PM

    I AGREE WITH THE ABOVE CONTRIBUTIONS.IN SIMPLE ECONOMIC TERMS PROPERTY IN DUBLIN 2,4,5,THEIR IS A SERIOUS SHORTAGE YIELDS ARE MIN 5%.
    APARTMENTS IN VERY GOOD AREAS ARE CHANGING HANDS FOR MID250K,WITH MIN YIELD OF 5%.INVESTERS ARE PICKING THEM OFF.

    REGARDING FAMILY HOUSES THE DEMAND IS VERY COMPEDITIVE,WITH GOOD UPWARD PRESSURE ON PRICES.YOU NOW CAN BUY PROPERTY IN DUBLIN CHEAPER THAN IT IS TO BUILD.OF COURSE WITH OUR LOW DENSITY THERE IS NO SPACE TO BUILD.

    THE DUBLIN MARKER IS RECOVERING,SADLY OTHER AREAS OF IRELAND MAY NOT RECOVER SOON IF AT ALL.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: TonyPony Date: Tuesday March 26, 2013 @11:08PM

    Well its great to see stability in the rental market. Im a long term renter, but hope to buy in the coming years, although I see very little opportunity to get a decent mortgage. That will be the real decider.

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Mark Date: Sunday April 28, 2013 @06:06PM

    Hi,

    Just wondering if anyone could clarify if the figures on the 'Daft.ie Snapshot of Rents Nationwide' are based on single- or double-room figures? I have noticed this come up several times when talking to friends regarding their discussions with landlords - it seems that landlords consult this report and use it as a basis for upping rents if they are currently below the figures for their property's area.

    However, the problem is that this might not in fact be justified if all rooms are not double. For instance, if a landlord has a property with 2 double rooms and a box room in Dublin 7, they might consider it appropriate to raise the rent to €1,223, based on the 3-room figure, whereas (if the report is based on a property comprising 3 double rooms), a figure somewhere between the 2- and 3-bedroom figures might be more appropriate.

    Seems like it would be something very easy to include as a footnote in the next report.

    Thanks
    Mark

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  • Re: The Daft Rental Report Q4 2012

    Posted By: Anonymous Poster Date: Monday April 29, 2013 @10:52PM

    I agree with Mark. I think using sq feet would be more appropriated than number of bedrooms.

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