Shortage of supply drives up rents for Galway City homes

 A growing shortage of quality rental properties in Galway City is continuing to drive up rents in the private accommodation sector.

 A new report from property website Daft.ie shows that rents in Galway City rose by 4.4% in 2013, while in the county, there has been a drop of 1.4%.

Average rents in the city now stand at €814 a month– down 15.4% from the peak in 2007 – while in the county, the average monthly rent is €544.

The increases in rents have been attributed to a shortage of good quality properties in the city.

Michael Fahy of City Property Services said there has been a spike in demand in recent months, and that many quality properties are being snapped up in a matter of days.

He described the current level of activity in the rental market as “incredible”, particularly in a time of huge pressure on the economy.

A breakdown of the figures shows a one-bed home is now renting in Galway City for an average of €604; a two-bed for €737; a three-bed for €859; a four-bed for €933 and a five-bed for €1,071.

Young couples, who traditionally would have bought or built their own homes, are now choosing to rent.

It is also widely believed that private accommodation rents are on the increase in the city because of a rise in the number of people who were previous owners and are now reluctant to risk their savings by getting back onto the property ladder.

Recent figures from the Central Statistics Office show that almost half (49.5%) of Galway City’s population is living in rented accommodation, which is twice the national rate.

He described the current level of activity in the rental market as “incredible”

Read more in today’s Connacht Sentinel