The figures published today reveal the supply of rental properties across Ireland increased by almost 50% in the last three months of 2007.
This dramatic increase in supply has led to a leveling off in rents, with the average rent nationwide remaining unchanged at €1,388.
This increase is more than likely a consequence of investors who had put up their properties for sale in 2007 – or who had left their properties vacant up to now – releasing more properties onto the rental market.
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These properties have pushed up the overall level of supply and contributed to the slowdown in rents, particularly in non-city areas.
Ronan Lyons, Economist at Daft.ie said: "Rents have now stopped increasing for the first time since they started to rise in mid-2004, when Ireland opened its labour markets to the new EU members.
"The fact that rents have risen steadily since then shows the strong connection between the rental market and immigration. Overall demand still remains strong, particularly in urban areas, and we do not foresee any major weaknesses while immigration remains at current levels."
(VB/JM)
