Daft.

ie Rental Report – 2008 in Review
February 2009 Contact: Ronan Lyons, Economist, Daft.ie ronan.lyons@daft.ie

Rental prices – headlines

The average rent nationwide in January 2009 was €885, compared to a peak of €1,017 a year earlier
 

Rents are now at levels similar to Q2 06 Rents are about 10% above their previous trough of Q1 04 This compares with rises of 9.3% during 2006 and 6.3% during 2007 Rents fell 6.0% during Q4, compared to falls of 2.1% in Q2 and Q3 Rents have now fallen for eleven consecutive months

Rents fell 11.6% over the course of 2008

National trends in rents, 2002-2009
105 100 95
2007 = 100

2002

2003

2004

2005

2006

2007

2008

2009

90 85 80 75 70
Daft.ie national rent index
'02 A J O '03 A J O '04 A J O '05 A J O '06 A J O '07 A J O

Jan 88.5

'08 A

J

O

'09

Ireland's Biggest Property Website

Feb 21, 2009

Quarterly changes in rents nationwide
6% 4% 2% 0% -2% -4% -6% -8% 2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4 Quarterly change in national rents

2006

2007

2008

Ireland's Biggest Property Website

Feb 21, 2009

Trends in rents by region, 2006-2009
105 100
2007 = 100

2006
Dublin Other cities Rest-of-country

2007

2008

95 90 85 80

'06 F M A M J J A S O N D '07 F M A M J J A S O N D '08 F M A M J J A S O N D '09

Ireland's Biggest Property Website

Feb 21, 2009

Quarterly changes in asking prices, by region
6% 4% 2% 0% -2% -4% -6% -8% Dublin Other Cities Rest of country

2006

2007

2008

2006 2006 2006 2006 2007 2007 2007 2007 2008 2008 2008 2008 q1 q2 q3 q4 q1 q2 q3 q4 q1 q2 q3 q4

Ireland's Biggest Property Website

Feb 21, 2009

Rental stock and flow – headlines

Stock of properties available to rent tops 20,000

About four times the typical level of 5,000-6,000

Volume of properties traded has more than doubled since 2007

Gap between properties entering market and those exiting market persistent and, in Q4 2008, large

Ireland's Biggest Property Website

Feb 21, 2009

Rental market stock, inflow and outflow
25000 Stock 20000 15000 10000 5000 0 2007 Apr Jul Oct 2008 Apr Jul Oct 2009 Inflow Outflow*

* Outflow calculated as residual difference between inflow and change in stock

Ireland's Biggest Property Website

Feb 21, 2009

Stock of Rental Properties, by region
8000 7000 6000 5000 4000 3000 2000 1000 0 2007 Apr Jul Oct 2008 Apr Jul Oct 2009 Dublin Leinster Munster Conn-Ulst

Ireland's Biggest Property Website

Feb 21, 2009

Irish property market yields – headlines

Overall national average yield remains low, at 3.4%
 

This is above the same figure for a year previous (3.17%) Due to ECB action, yields will soon be back above the cost of borrowing but are unlikely to rise in 2009

Expected yields are higher in urban areas

Highest yields are in Dublin City Centre (4.4%), West Dublin (4.3%) and South Dublin city (4.2%) Lowest yields are in West Leinster and Connacht/Ulster – including Galway city (3.2%)

Ireland's Biggest Property Website

Feb 21, 2009

Expected Yields around the country
5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 2006 q1 2006 q2 2006 q3 2006 q4 2007 q1 2007 q2 2007 q3 2007 q4 2008 q1 2008 q2 2008 q3 2008 q4

Dublin Rest-of-country

Other Cities ECB +1%

Ireland's Biggest Property Website

Feb 21, 2009

Notes on methodology and sample size

Analysis of properties listed for rent, between one and five bedrooms, on daft.ie

Q4 2008 sample: 58,565

2008 total sample: 196,581

Rents are calculated based on hedonic price regressions, across the following dimensions:

 

16 regional markets (6 Dublin, 4 other cities, 4 ROC), interacted each with 4 property types, 5 bedroom numbers, 11 bedroom-bathroom combinations 17 bedroom type variables (single, double and twin) 10 further property attributes (e.g. garden, dishwasher)

Contact details and disclaimer

For more, contact Ronan Lyons (ronan@daft.ie) Disclaimer

The Daft.ie Report is prepared from information that we believe is collated with care, but we do not make any statement as to its accuracy or completeness We reserve the right to vary our methodology and to edit or discontinue the indices, snapshots or analysis at any time for regulatory or other reasons Persons seeking to place reliance on any information contained in this report for their own or third party commercial purposes do so at their own risk

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