Rents 'likely' to rise by 10pc in 2015 says Ireland's largest private landlord
Rents in Ireland could rise by ten pc this year, according to the country’s largest private residential property owner.
Investment firm Irish Residential Properties Reit (IRES) made the prediction at its AGM on Tuesday, saying that it expects rents in Dublin and other Irish cities to rise by ten pc in 2015, and again by three pc in 2016.
The company, which owes more than a thousand residential properties in the Greater Dublin Area, is planning a major expansion over the next two years.
Chief executive officer David Ehrlich said he expected the firm to raise its residential holdings to 1,600 units before market rents stabilised in 2016.
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Established less than a year ago, I-RES is valued at €457 million.
Speaking at the investment company's AGM yesterday, CEO Ehrlich said the focus for its new units would be the affordable and mid-tier market.
“Not everyone can afford a Mercedes Benz, some people need a Nissan,” he said, noting that the rental market needed “more of what people can afford.”
Among IRES' rental properties are units costing €2500 a month in the upmarket Marker Residence complex in Dublin's Docklands and two bed apartments in Tallaght for just under €1000.
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During his speech, Mr Ehrlich criticised the current approach to planning in Dublin, saying that density rules had “inhibited its ability to develop its rental sites”.
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“We’d like to see a more flexible approach in terms of density and heights,” he said, noting that the investment company would like to build 400-450 apartments on a site in Sandyford.
Mr Erhlich said it was “frustrating” to hear talk about housing shortages “[because] IRES could get development under way quickly because the infrastructure was in place.”