Private rent levels are heading back towards Tiger ‘boom’ rates

The chronic shortage of private accommodation available in the rental sector in Galway City is driving rents towards levels last seen at the height of the Celtic Tiger boom.

Figures from property website daft.ie show that rents are now averaging €875 per month in the city – that’s up 7.2% from a €816 average one year ago.Average rents here are now up 15% since their lowest point in 2011 – another 5% or 6% will see them return to levels last seen during the peak at the end of 2007.

Economist Ronan Lyons from daft.ie – who is also Assistant Professor of Economics at Trinity – says the chronic shortage of suitable properties is continuing to drive up rents in Galway.

“In many ways the lack of choice is more concerning than the high rental rates, although clearly the two phenomena are inextricably linked.

“Unlike the sales market, then, where rapidly rising prices have drawn out significant amounts of secondhand supply, rising rents have not seen any increase in listings. If anything, the opposite is the case. And the picture is even worse for building new homes,” said Mr Lyons.

The figures show that rents in Galway City for a one-bed property are averaging €605 per month; for a two-bed the figure is €813. For a three-bed, the figure is €979 per month; for a four-bed it is €1,143 and for a five-bed, rents are averaging €1,489.

For the sake of comparison, in December 2007 – the peak of high rents in Galway – the figures were: a one-bed for €689; a two-bed for €945; a three-bed for €1,047; a four-bed for €1,169 and a five-bed for €1,497.On a national basis, rents are up an average of 11% on twelve months ago – Dublin is up 14%; Cork up 8%; Limerick up 6% and Waterford up 5%.In County Galway, the average rent is now €592, up 7% (from €553) on a year ago.