Galway City sees a rise of 10.5 per cent in rental prices

By Ella Horgan

Rental prices in Galway City have risen by 10.5 per cent in the last year, according to the third Quarter Rental Report by Daft.ie.

Average rent prices have surpassed €2,000 for the first time with the average price to live in Galway City coming in at €2,189 per month.

This is the second highest rise in rent in Ireland’s cities, after Limerick which rose by 19.2 per cent.

The price to rent a 5-bedroom house in Galway City was the highest increase at 20.5 per cent now costing €2,786 per month.

Additionally, when comparing whether to rent or to buy in Galway City, Daft.ie concluded that paying a mortgage each month for a two-bed house would set you back €735 while renting costs €1,608 per month.

Market rents in the Connacht-Ulster region have reportedly fallen by 0.6 per cent in the third quarter of this year, proving hopeful.

According to Daft.ie, this 2024 report marks the fifteenth consecutive quarter in which market rents rose nationally, with a hike of 1.7 per cent.

The trends in relation to single room rental, as would apply to students, show an increase of 39.9 per cent from this time last year.  A single bedroom in the centre of Galway costs on average €677, with a double costing only €31 more at €708 per month on average.

In anticipation of the general election, set to take place on 29 November, Daft.ie conveyed its expectations for the 34^th Dáil.

“The target for the new government has to be giving the same priority to the rental sector that has been given to owner-occupiers and to social housing over the last few years.”

They support the implementation of change to the renting sector and say that without this action “it’s hard to see when conditions will change”.

Supplying commentary to accompany this report Ronan Lyons a Professor of Economics in Trinity College Dublin stated:

“As Dublin was enjoying something very close to stability, most of the rest of the country was experiencing double-digit inflation in market rents.”

In his comment, Professor Lyons discussed the relatively positive conditions seen in the country’s capital, with 2023 seeing a mere 2.6 per cent rise in the rental market.

He followed this by examining the incorrect notion that people must be “fleeing” urban areas post Covid-19 in his examination of the figures in Galway, Limerick and Cork.

Professor Lyons highlighted issues in Galway observing that rental inflation was at 14 per cent in the city by early 2024. This issue is a region-wide one, with fewer than 270 homes available to rent in Connacht-Ulster on November 1. This shows a 27 per cent decrease from the same date in 2023.

To read more on housing in Galway, click here.