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Irish Rents Continue Upward Trend as Supply Tightens – RTB/ESRI Rent Index Q3 2025

The latest RTB/ESRI Rent Index for Q3 2025 shows that Ireland’s rental market continues to experience steady upward pressure, with both new and existing tenancy rents rising against a backdrop of constrained supply and shifting regional dynamics. The report, which analyses over 14,500 new tenancies and nearly 50,000 existing tenancy registrations, provides the most comprehensive view of rental trends nationwide.

National Rent Levels Rise Across the Board

Nationally, the standardised average rent for new tenancies reached €1,776 per month, up 5.4% year‑on‑year. This marks a return to the growth rates seen in late 2024 and early 2025, following a slight easing in Q2.

For existing tenancies, rents rose by 4.6% annually, bringing the national average to €1,494 per month. The gap between new and existing rents remains significant, with new tenancy rents sitting 18.9% higher—a clear indicator of the premium faced by those entering the market today.

Dublin Still the Most Expensive, but Growth Stronger Outside the Capital

Dublin continues to command the highest rents in the country, with new tenancies averaging €2,307 per month. However, the capital also recorded the slowest annual growth at 4.4%, suggesting a stabilisation at the upper end of the market.

In contrast, areas outside the Greater Dublin Area (GDA) saw the strongest increases, with new tenancy rents rising 7.5% year‑on‑year. The standardised average rent outside the GDA now stands at €1,433, reflecting sustained demand and limited supply in regional markets.

Within the GDA (excluding Dublin), new tenancy rents averaged €1,736, growing by 4.9% annually.

County-Level Variations Highlight Uneven Market Pressures

The report reveals significant disparities across counties:

  • Highest new tenancy rent: Dublin (€2,307)
  • Lowest new tenancy rent: Donegal (€1,056)
  • Fastest annual growth: Cavan (+14.3%)
  • Slowest annual growth: Tipperary (+0.1%)

For existing tenancies, Dublin again tops the list at €1,944, while Donegal remains the most affordable at €873.

Interestingly, in 10 counties, existing tenancy rents grew faster than new tenancy rents—suggesting that previous periods of high new‑tenancy inflation are now filtering into ongoing contracts.

City Trends: Limerick Leads in Growth

Among Ireland’s major cities:

  • Dublin City remains the most expensive for new tenancies at €2,237.
  • Galway City follows at €1,888, with the lowest annual growth among cities (3.9%).
  • Limerick City recorded the strongest annual growth at 11.3%, with new tenancy rents reaching €1,685.
  • Cork City (€1,753) and Waterford City (€1,452) also saw steady increases.

For existing tenancies, Waterford City stands out with the highest annual growth at 6.5%.

Local Authority and LEA Insights

Within Dublin’s local authorities:

  • Dún Laoghaire–Rathdown recorded the highest new tenancy rents at €2,631.
  • South Dublin had the lowest at €2,183.

At Local Electoral Area level:

  • Stillorgan (Dublin) is the most expensive for both new (€2,930) and existing (€2,715) tenancies.
  • Lifford–Stranorlar (Donegal) has the lowest new tenancy rents (€851).
  • Carndonagh (Donegal) has the lowest existing tenancy rents (€642).

Market Turnover Continues to Decline

One of the most notable structural trends is the ongoing fall in new tenancy commencements. The four‑quarter moving average has dropped from 18,273 in Q3 2021 to 13,280 in Q3 2025, highlighting reduced mobility and persistent supply constraints.

The traditional Q3 spike—linked to the academic year—has also become increasingly muted, with the last three years showing subdued seasonal increases.

Rental Price Distribution Shows Deepening Divide

The report highlights a widening gap between affordability levels in Dublin and the rest of the country:

  • 41.8% of new tenancies nationwide cost over €2,000 per month.
  • In Dublin, 63.9% of new tenancies exceed €2,000.
  • Outside the GDA, only 18.9% of new tenancies exceed €2,000.
  • Just 2.3% of new Dublin tenancies fall below €1,000, compared with 24.2% outside the GDA.

Economic Context: Strong Demand, Softening Labour Market

The broader economic backdrop remains supportive of rental demand. Q3 2025 saw:

  • Continued growth in domestic consumption and modified domestic demand.
  • A slight rise in unemployment to 5.1%.
  • Inflation edging up to 2.7% by September.

Despite a softening labour market, the combination of strong demand and limited supply continues to underpin rental inflation.

Conclusion

The Q3 2025 Rent Index paints a picture of a rental market still under significant pressure. While growth rates have stabilised, rents continue to rise across nearly all regions and property types. The widening gap between new and existing tenancy rents, combined with declining market turnover, underscores the ongoing challenges facing renters—particularly those entering the market for the first time.

For landlords, agents, and policymakers, the data highlights the need for continued focus on supply, affordability, and the evolving dynamics between regional and urban markets.