A new report from the Employment Conditions Abroad (ECA) group shows the average cost of a three-bed home for rent in central Dublin is €3,713 per month.
That figure is surpassed only by rents in Moscow (4th,), Geneva (3rd), Zurich (2nd) and London (1st) among European countries.
London has consistently been the most expensive city to rent in throughout Europe for five years, with the ECA estimating the current average cost to be €6,175 per month for a three-bed in a prime London location.
The cost of renting in Dublin rose by 2.2 per cent in the last year, an effect of limited supply and business staff being sent to the capital by multinational companies according to the report.
“Dublin remains a popular location for businesses to send staff on assignment, so demand continues to impact accommodation costs,” Alec Smith of the ECA said.
“In addition, ongoing building regulations which remain tight in Dublin makes supply slim in popular areas of the city.
“While many residents left cities to move further out or back home, the pandemic effectively froze many property markets instead of causing immediate downward pressure on rents.
“The success of countries’ routes out of lockdown and back to some sort of normality will change how property markets react.”
Dublin is more expensive than other capital cities like Paris (€3,537), (Rome (€2,729) and Berlin (€2,475), as well as regional hubs like Valencia (€1,600).
Minister for Housing Darragh O’Brien said the key challenge “remains supply.”
“This Government is committed to getting Ireland back building and increasing the supply of public, social and affordable homes as well as introducing a new form of cost rental tenure in Ireland which is currently underway through the Affordable Housing Bill.”
Sinn Féin’s Eoin Ó’Broin said the rental crisis was the result of the “government’s failure” however.
“Fianna Fáil and Fine Gael simply do not care about renters, despite the fact that a quarter of Dubliners live in rented accommodation.” he said.
“The failure of the pressure zones to stop spiraling rents, excessive tax breaks for vulture funds to invest in high end rental stock and the disorderly exit of 20,000 accidental and semi-professional owned rental properties from the market in recent years are all part of the problem.
“However, the biggest failure of government has been its refusal to invest in large scale affordable cost rental to meet the needs of workers and families in our cities.
“Sinn Féin in government would ban rent increases for three years, put a month’s rent back in every renter’s pocket through a refundable tax credit,” O’Broin claimed.
Hong Kong remains the most expensive city worldwide to rent in, with a three-bed, prime location apartment costing over €8,000 per month.