Insights into Ireland’s Rental Market
The Residential Tenancies Board (RTB) has released the Q3 2023 Rent Index report, providing comprehensive insights into the dynamics of Ireland’s private rental market. Independently analysed by the Economic and Social Research Institute (ESRI), the report covers the period from July to September 2023, shedding light on the trends in both new and existing tenancies.
The report encompasses two key components: the longstanding “New Tenancies Rent Index,” which spans from Q3 2007 to Q3 2023, and the “Existing Tenancies Rent Index,” capturing the rent levels faced by sitting tenants in tenancies of at least one year in duration from Q2 2022 to Q3 2023. This comprehensive approach makes the RTB Rent Index the most accurate and authoritative report on the private rental sector in Ireland.
Key Findings from the Q3 2023 Rent Index Report:
- Market Composition: Dublin and the Greater Dublin Area (GDA) accounted for a significant portion of all new and existing tenancies in Q3 2023, reflecting the concentration of rental activity in these regions. Notably, County Dublin accounted for 45.4% of new tenancies, while the GDA accounted for a further 7.6%, indicating a strong demand for rental properties in these areas.
- Property Types and Sizes: The report highlights the prevalence of apartments in the rental market, with 57.4% of new tenancies in Ireland being flats or apartments. In Dublin, this proportion rose to 78.2%, underscoring the popularity of apartment-type accommodation in the capital. Additionally, the data reveals variations in the distribution of bedrooms, with 25.1% of new tenancies having three bedrooms, compared to 31.4% of existing tenancies, indicating a shift in property sizes.
- Rental Trends: The report provides insights into rental price developments, revealing that the standardised average rent for new tenancies in Q3 2023 stood at €1,598, reflecting a 11.0% year-on-year increase. In contrast, the standardised average rent for existing tenancies was €1,357, representing a 5.2% year-on-year growth. These figures offer a comprehensive understanding of the evolving rental landscape in Ireland.
- Regional Variances: The Q3 2023 Rent Index report delves into regional variations, showcasing the evolution of standardised average rents and the year-on-year rate of change across different regions. The data highlights substantial growth in standardised average rents in Dublin, the GDA, and areas outside the GDA, providing valuable insights into regional rental dynamics.
Deputy Director of the RTB, Lucia Crimin, emphasised the significance of the report, stating, “The RTB is very pleased to partner once again with the ESRI to produce the Q3 2023 Rent Index report. Although rent levels are continuing to rise in both new and existing tenancies, standardised average rent levels in existing tenancies are lower than in new tenancies. The report provides robust insights into the private rental sector by tracking rental price developments in new and existing tenancies.”
The Q3 2023 Rent Index report offers a comprehensive and detailed analysis of Ireland’s rental market, providing stakeholders, policymakers, and the public with valuable data to understand the evolving dynamics of the private rental sector. The report’s findings serve as a crucial resource for informed decision-making and policy formulation in the realm of housing and rental regulations.
For more information and to access the full Q3 2023 Rent Index report, visit the RTB website or contact the Residential Tenancies Board directly.