RESIDENTIAL RENTS WILL continue to rise in the main Irish cities in the next two years and could see a rise of up to 7 per cent by 2014 according to property experts.
Savills Ireland have said rents have dropped by 25 per cent from the peak in 2008 but they have begun to rise again and this pattern is set to continue.
According to letting manager a Savills Ireland, Clarie Neary, demand remains particularly strong in prime locations with rents rising between five and seven per cent fr properties in Dublin 2 and Dublin 4 since this time last year.
Rents remain solid in Dublin suburbs with demand and rental levels remaining stable over the last 12 months.
Savills undertook an analysis of current rental stock throughout Dublin and found that typical rents in the capital, for a 2-bedroom apartment, vary between €1,000 and €1, 400 per month, with €1,200 being the average.
Neary said the number of families and couples choosing to rent as opposed to purchasing has increased dramatically over the past five years which has led to a particular shortage of houses in the rental market.
“During the boom, many twenty-somethings went straight from their parents’ home to owning their own home.” Neary said. “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.”
Neary said couples will continue to rent in the medium term until the supply of mortgage finance improves.