The Help to Buy scheme is the only measure taken in Budget 2017 to stimulate the supply of new homes in Dublin. It is designed to help first time buyers but essentially it is a grant to developers that will probably increase asking prices. The government are taking a gamble that higher prices will boost the supply of new homes. Whether it works or not, the reality is we won’t see any results for a number of years.
No measures were taken in relation to the tens of thousands of vacant properties, and there was nothing in the budget for renters and so, we do not see the issue of supply and rising rents being resolved any time soon.
Assuming the issue of supply is not solved immediately, below is a prediction of average rents in Dublin over the next three years.
To make a prediction, the figures we have used are the average quarterly rents for Dublin, going back five years and based on Daft’s new methodology.
As you can see in the above figures, the averages over the past five years vary considerably. Although this is not a perfect science, you could assume that the trend will continue if there are no significant changes in the market. Assuming that’s true, here are our predictions.
As you can see, going on averages, we predict that the average rent in Dublin will reach €2000 per month by the end of 2019.
Read our blog on why Dublin’s tenants may be in for a big shock