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Irish Independent
Irish Independent
Caoimhe Gordon

Ireland’s largest private landlord reports 99pc occupancy as demand soars

Ires Reit chief executive Margaret Sweeney. Photo: Naoise Culhane

Irish Residential Properties Reit, Ireland’s largest private landlord, said that demand continued to “far outstrip” supply as occupancy levels climbed to over 99pc.

The company, which has a portfolio of almost 4,000 homes in Ireland, reported a “strong” 2022 performance in a trading update published today.

Occupancy levels rose to 99.4pc as at December 31, up from 99.1pc a year earlier.

The average rent now stands at €1,750 per month, which the company says is around 13pc lower than the average rent levels for new tenancies in Dublin.

This marks an increase from the average monthly rent per unit in the first half of 2022, which stood at €1,688. This was also up from €1,641 recorded in the first half of 2021.

The company also expanded its portfolio last year through a mixture of both acquisitions and new developments. This growth includes three Dublin developments, with Ires adding 238 units in 2022.

This figure includes 108 at the company’s development in Ashbrook in Clontarf, as well as 69 at Tara Vew in Booterstown. A further 61 units were added at the School Yard Development located near Drumcondra.

Ongoing expansion illustrates demand for further growth here by big institutional landlords, despite controversies over the growing scale of so-called cuckoo funds in the Irish housing market

Ires pointed to rising inflation as a challenge experienced by the company over the year, with further increases in employee costs, utilities, repairs and maintenance reported in the second half of the year.

Despite ongoing macroeconomic uncertainty, the company said it expects to be in a strong position in the coming year due to its large portfolio and strong levels of demand.

“The residential rental market remains strong as we continue to see powerful structural trends in demographics, robust employment levels and technological change,” chief executive Margaret Sweeney said.

“All of these dynamics are key drivers of growth in the private rental sector, which is translating into excellent operational performance in our portfolio.”

She added that Ires is aware of the ongoing cost pressures faced by renters and have introduced initiatives to support residents as a result. 

The company, which has apartments and homes for rent in Dublin and Cork, expect a further 44 units to be completed this year.

Ires reported net rental income of €32.6m in the first half of last year, a 4.1pc increase from the same period in 2021. Revenue grew 6.7pc to €42.1m in the six months to June 30 2022, with the rise attributed to the same factors driving the rise in rental income.

It will report its results for the year on February 24.

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