Rental Market Conditions in Dublin

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The economy and its segments of the labor market have been put on hold due to the pandemic and subsequent lockdowns. With all the changes the economy has been through, the rental market in Dublin has proved to be highly resilient after the aftermath of the virus. An evident factor is that tenants in the Irish market are seeking value and space, and many are looking to fulfill this in parts of Dublin that have not been recently considered.

Remote work has prompted this new change, mostly because many people have not able to travel to work for most of 2020. More affordable properties in the suburbs have rented well throughout most of last year, with many newly completed properties renting well too. The levels for rental properties have remained very steady in most parts of the market for new places to live. However, there has been a decreasing amount in demand for high tier properties in certain parts of Dublin, this comes as a result of freeing up stock from short term lettings and the lack of new entrants coming to the country.

However, indications and expectations are that that as employees with multinationals are returning to Ireland. With travel opening up, there are more natural movements in the greater marketplace leading to demand returning. There is a feeling that there will be increases of inflows in the 2nd quarter of 2021. It is also looking like there will be a continued divergence between the demand pricing for new and older rental stocks. In Ireland, of the 300,000 private tenancies only about 15 thousand are attributable to large scale and institutional landlords.

About less than have of these private locations are for new stocks built in the last 8 years. Renter response to “build to rent” multifamily developments is very interesting, with most tenants wanted not just higher build and energy efficient standards of new developments, but also improved on site offerings. These include amenities and management involved with the new standards, with the proactive management approach and focus on the community and its lifestyle.

Working from home will continue to be a feature of Irish life, especially for renters. We are starting to see developers plan for this in terms of accommodating working from home features and landlords are considering changes. Many landlords have factored in needs for renters living at home and are doing what’s best to accommodate them. This is important and it will continue to be popular in Ireland. It is going to be in demand for renters all over the country for the rest of 2021 and beyond.

Written by John Spurrier, Mortgage Analyst for Online Application