Rent rates here have stabilised

Property website Daft.ie outlined that rents rose by almost half a percentage point, with the average rent nationwide standing at €840.

But the research shows that the stabilisation in rents is being driven by urban areas and localities such as south Co Dublin which have increased rental prices in each of the last three quarters.

In Dublin city centre and the north city area, rents rose 0.9pc between July and October. Within the third quarter of 2010, rents in the overall Dublin area rose by 0.7pc.

Compared to 2007, rents are now 29pc -- or €430 on average -- below peak levels.

The average rent in Dublin is now €1,080, down from a peak of more than €1,500 in 2007. Rents in Cork rose by 0.4pc, while rents in Galway rose 3.2pc in the same period, reflecting seasonal demand.