Real Estate Alliance

Real Estate Alliance Reports an Increase in Yields in the Rental Market an

Yields from residential rental properties are up on average over 18% on last year according to national property group, Real Estate Alliance. Recent rental rate reviews don’t give a full and accurate view of the rental market the group has reported, based on a survey of its member offices nationwide. While average rental rates are down between 5% and 10%, there has been no decrease in certain areas such as Athlone, Killarney and Tralee and yields have improved nationwide.

Average yields for 2008 are at 4.25% up by 15% on last year. In 2007 the group reported average returns at 3.7%, compared with returns of between 2.8% - 3.2% at the end of 2006. Yields this year are as high as 5.4% in areas such as Balbriggan and are at the 5% mark in Ashbourne and Nenagh, according to figures released by Real Estate Alliance. Yields are between 4% and 4.5% in Drogheda, Newbridge, Lucan, Maynooth, Longford, Tipperary, Trim, Cork (Charleville), Callan, Blessington and Tralee. Cavan and Navan are reporting yields of 4.8%.

The greatest increase in yields has been seen in 2 bed apartments across the country with an average increase of 18% versus 11% for 3 bed semis. An increase in percentage figures are as high as 70% in Co. Sligo and at over 40% in Co. Cork and locations such as Carlow, Navan and Carrick-on-Shannon. Ashbourne, Athlone, Balbriggan, Longford and Trim are experiencing increases of over 25% in yields for 2 bed apartments.

Yields for 3 bed semis are on average at 4% this year compared to 3.75% in 2007. Yields are as high as 4.5% in Balbriggan, Maynooth, Baltinglas and Blessington and Nenagh and are between 4 and 4.5% in locations like Lucan, Carrick-on-Shannon, Carlow, Ashbourne, Navan, Tralee and Trim. Yields are between 3.5% and 4% in Sligo, North Donegal, Kells, Kilkenny, Killarney, Athlone, Cavan and Drogheda.

The survey of Real Estate Alliance members around the country noted a shift in the profile of renters with many members reporting a decrease in the number of Eastern Europeans and a rise in the number of Irish people seeking rental accommodation. Two and three bedroom properties are most in demand and in all cases tenants are demanding new well-equipped properties, finished to a high standard. Properties within close proximity to shops, transport and amenities are most desirable, according to Real Estate Alliance.

“Certain areas have undoubtedly seen a flood of rental properties come onto the market in recent months and this has created ‘microcosms’ where rents have been driven down in certain areas. This however is not reflective of the overall rental market around the country. With prices and interest rates having come down significantly there are some good returns to be had on rental properties despite the decreases in rents.”, according to Paul G. Grimes of Real Estate Alliance.

While average rental rates are down between 4% and 5%, there has been no decrease in certain areas. The average monthly rent for a 2 bed apartment is down by 4% across the country. Towns like Ashbourne, Balbriggan, Ballyconnell, Blessington, Carlow Tralee, Trim, Killarney and Athlone and are reporting no change in rental prices for 2 bed apartments. Locations like Baltinglas, Newbridge, Navan are reporting decreases of approximately 5%. Drogheda, Sligo, Nenagh, Lucan and Longford are experiencing decreases of between 6-8%.

Average rental prices for 3 bed semis are experiencing an average decrease of 5% across the country. Again similar locations are reporting no change in monthly rental prices. Newbridge, Kilkenny and Carrigallen in Co. Leitrim are reporting decreases of close to 10% on the monthly rent for a 3 bed semi. Longford’s average monthly rent for a 3 bed semi has decreased from €750 per month to €600 per month. In Co. Sligo, rents for a 3 bed semi are down by 16% in certain locations. (Table below listing comparative rents from 2007 and 2008)

Real Estate Alliance member firms draw on vast experience in offering clients a top class service in residential, commercial, valuations, sales, purchases, lettings, agricultural lands as well as land development for housing sites, acquisitions, planning, zoning and professional consultancy, including rent reviews, arbitrations, CPO’s, lease renewals and appraisals. www.realestatealliance.ie

For further information contact Eimer O’Keeffe, Real Estate Alliance , 086 8249040

Table 1: Comparative yields for 2007 and 2008 for a 2 bed apartment in locations around the country.

	Rent 2 bed 07	Yield 07	Rent 2 bed 08	Yield 08	% increase
Ashbourne	1000	3.93	1000	5.00	27
Athlone	700	3.05	700	3.82	25
Balbriggan	1000	4.21	1000	5.45	29
Baltinglas	800	4.17	800	3.84	-9
Blessington	950	4.00	1000	4.38	9
Callan	625	3.95	600	4.36	10
CARRICK-ON-SHANNON	550	2.59	550	3.77	45
Carlow	650	3.71	650	4.33	16
Castlerea	560	3.53	500	3.63	2
Cavan	600	3.60	600	4.80	33
Charleville	650	3.00	650	4.22	40
Drogheda	900	3.85	700	4.20	9
Kells	700	3.65	600	3.79	3
Killarney	850	3.00	850	3.40	13
Kilkenny	750	3.60	700	3.81	5
Longford Town	550	3.14	500	4.00	27
Lucan	1050	3.76	1000	4.14	10
Maynooth	1100	4.00	1100	4.55	14
Navan	800	3.43	800	4.80	40
Nenagh	650	4.73	600	5.14	8
North Donegal	400	3.20	400	3.43	7
Sligo Town	600	4.43	550	3.14	71
Tralee	540	3.60	565	4.23	17
Trim	700	3.11	700	4.00	29
Tubbercurry, Co. Sligo	500	2.14	425	3.64	70

Table 2: Comparative yields for 2007 and 2008 for an average 3 bed semi in locations around the country.

	Rent 3 bed 07	Yield 07	Rent 3 bed 08	Yield 08	% increase
Ashbourne	4.10	3.93	1200	4.17	2%
Athlone	750	3.53	750	3.67	4%
Balbriggan	1200	4.00	1100	4.55	14%
Baltinglas	900	3.72	1100	4.55	22%
Blessington	1100	3.66	1100	4.55	24%
Callan	750	3.92	750	4.11	5%
CARRICK-ON-SHANNON	650	3.06	650	4	30%
Carlow	850	3.64	650	4	10%
Castlerea	550	3.67	500	3.75	2%
Cavan	600	3.60	550	4	7%
Charleville	800	4.00	750	3.91	0%
Drogheda	1100	4.00	750	3.91	0%
Kells	850	3.77	750	3.91	4%
Killarney	900	3.00	900	3.38	12.50%
Kilkenny	850	3.64	750	3.91	7%
Longford Town	750	3.60	600	4	11%
Lucan	1250	4.00	1200	4.23	6%
Maynooth	1200	3.69	1200	4.5	22%
Navan	900	3.40	875	4.2	24%
Nenagh	800	4.00	750	4.62	16%
North Donegal	600	3.79	500	3.75	0%
Sligo Town	800	3.43	750	3.6	5%
Tralee	700	3.36	700	4.2	25%
Trim	850	3.29	850	4.08	24%
Tubbercurry, Co. Sligo	600	3.89	500	3.87	0%

Table 3: Rental Prices of an average 2 bed apartment and the % different between 2007 and 2008.

2 bed apartments	2008	2007	% different
Ashbourne	1000	1000	0
Athlone	700	700	0
Balbriggan	1000	1000	0
Ballyconnell	500	475	5
Baltinglas	800	850	-5.8
Blessington	950	950	0
Callan	600	650	-7.7
Carlow	650	650	0
CARRICK-ON-SHANNON	550	600	-8.3
Carrigallen	450	450	0
Castlerea	500td>	550	-9.1
Cavan	600	650	-7.6
Charleville	650	700	-7.14
Drogheda	700	750	-6.7
Kells	600	650	-7.7
Killarney	700	700	0
Kilkenny	850	850	0
Longford Town	500	550	-9.1
Lucan	1000	1100	-9.1
Maynooth	1100	1,150	-4.3
Navan	800	850	-5.9
Nenagh	600	650	-7.7
Newbridge	850	900	-5.6
Newport, Tipperary	800	800	0
North Donegal	400	400	0
Sligo Town	550	600	-8.3
Tralee	565	565	0
Trim	700	700	0
Tubbercurry, Co. Sligo	425	450	-5.6

Table 4: Rental Prices of an average 3 bed semi and the % different between 2007 and 2008.

3 bed semi	2008	2007	% different
Ashbourne	1200	1300	-7
Athlone	750	750	0
Balbriggan	1100	1200	-8
Ballyconnell	500	500	0
Baltinglas	800	850	0
Blessington	1200	1250	-4
Callan	750	750	0
Carlow	800	850	-5
CARRICK-ON-SHANNON	550	600	-8.3
Carrigallen	650	650	0
Castlerea	550	600	-8
Cavan	550	600	-8
Charleville	750	800	-6
Drogheda	850	900	-5
Kells	750	800	-6
Killarney	750	850	-11
Kilkenny	900	900	0
Longford Town	600	750	-20
Lucan	1200	1250	-4
Maynooth	1200	1200	0
Navan	875	900	-2
Nenagh	750	800	-6
Newbridge	1000	1100	-9
Newport, Tipperary	650	700	-7
North Donegal	500	550	-9
Sligo Town	750	800	-6
Tralee	700	700	0
Trim	850	850	0
Tubbercurry, Co. Sligo	500	600	-16

NOTE TO EDITORS

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