Ireland’s Rental Market and Remote Working Surge in 2023

In the second quarter of the year, Ireland’s market rents increased by an average of 2.4% compared to the first three months of 2023. However, this upward trend was not echoed in Dublin, which saw muted increases, according to the latest Rental Report by Daft.ie revealing a 10.7% year-on-year rise in open-market rents, pushing the average nationwide to just under €1,800 per month. Dublin’s market rents in Q2 saw a modest rise of 0.3% quarter-on-quarter, in contrast to the rest of the country that experienced a more significant 4.3% uptick between March and June. As of August 1st, fewer than 1,200 homes were available for rent nationwide. 

Interestingly, among the 27 EU member states, Ireland ranks amongst the top in terms of its workforce embracing remote work. BNP Paribas Real Estate Ireland (BNPPRE) revealed that while the Netherlands boasts the highest percentage of its workforce engaged in remote working (over 50%), Ireland is at the forefront in the pace of transitioning from conventional office work to remote settings. Notably, in 2019, a mere 7% of Ireland’s workforce reported that they “usually” worked from home. By 2022, this figure skyrocketed to 25%, marking the most substantial percentage point surge among all EU countries.

Report author, John McCartney, BNPPRE’s Director of Research, remarked on Ireland’s adaptability, but also highlighted the repercussions on commercial property. The rise in remote working has led employers to embrace hot-desking and rostering systems (let’s not talk about WeWork today!), thereby reducing the need for office space per employee. Furthermore, BNPPRE data underscores that 27.9% of Irish employees work in desk-based sectors, a number higher than the EU average of 24.6%. Since the initial outbreak of Covid-19 in Q1 2020, desk-based jobs in Ireland have surged by 15%, in stark contrast to the EU’s average growth of 6.9%

This trend is all the more interesting given the news this week that plans have been submitted to Dún Laoghaire-Rathdown County Council by the Dante Property Company to finalise and repurpose the long-derelict 14-storey Sentinel tower in Sandyford, South Dublin. Originally set to be one of Dublin’s tallest office constructions, the intention is now to transform it into an apartment complex. The proposal includes 110 apartments within the main tower and an expanded adjoining block, ranging from one to three bedrooms. The Sentinel tower is part of the larger Rockbrook site, previously owned by developer John Fleming. The building’s construction ceased in 2008 due to financial troubles and the Comer brothers acquired it in 2011. As a side note, this development, combined with the zoning changes emphasising residential use, signals potential growth and other investment opportunities in the Sandyford area. As always, we would be interested to hear your thoughts on this…

Ian Lawlor
086 3625482

Managing Director 
Lotus Investment Group