Rents fall in first quarter of 2008

Rents for properties in Ireland have dropped in the first quarter of 2008, a new survey has revealed.

According to the Daft Rental report, a number of factors could have contributed to the decline, including a slowing in the number of migrants, sluggish property sales and the decline in the number of the people employed in the construction sector. Many regions around the country also appear to have met the demand in terms of private rental properties, leading to decreases in rents charged.

However, some areas continue to buck the trends. West County Dublin and West Leinster have both seen rents climb, and although Dublin city centre properties have been affected by the fall in rents, there is still a considerable difference of €400 between the cost of renting a one-bedroom apartment in the capital and its equivalent in West County Dublin.

Rents have fallen gradually since the second half of 2007, following more than two years of continuous growth that peaked in June last year. The average rent stood at €1,370 in April, a €30 fall from late 2007. The average cost of renting a one-bedroom property in Dublin 4 is €1,359, while a similar property in Connacht and Ulster would cost tenants €510.

The study also found that the stock of rental properties increased significantly from over 5,000 in May 2007 to almost 12,000 in May 2008.

However, the report said that long-term investors were not at risk from falling rents, once their property was of high quality and properly managed.