€3,406 a month rent puts Dublin fifth on Europe's dearest cities list
Dublin is now the fifth most expensive city in Europe for renting a home, international research has shown.
The cost of renting in the capital is dearer than in Paris, Copenhagen and Stockholm, having increased by 8pc since last year.
Only London, which remains the costliest city in Europe, Moscow, Zurich and Geneva are more expensive.
A report from global mobility experts ECA International also shows that Dublin rental accommodation has climbed 35 places to 26th in the worldwide rankings over the past 12 months.
The average rent for a three-bedroom home in Dublin is now €3,406 a month.
One reason cited for the rapid rise in Dublin's rents is companies coming to Ireland to take advantage of our low corporation tax rate and re- locating their staff.
"The past 10 years have seen a significant turnaround in the fortunes of Dublin's residential rental market," said Alec Smith, the accommodation services manager at ECA International.
"The global financial crisis exposed a property bubble in Dublin and rents have increased significantly with each subsequent year of recovery.
"The cost of renting has also been affected by elevated demand from international companies relocating staff while looking to take advantage of Ireland's low corporate tax rate."
Mr Smith said the Irish Government has tried to counter spiralling rent costs by introducing Rent Pressure Zones, which limit annual rises to 4pc.
"In reality, this has had limited success, with landlords exploiting loopholes, allowing them to increase above the rent cap," he added.
Rental costs across Europe rose significantly through 2018, due in part to the strength of the euro.
While Dublin saw the biggest rises in expat rental costs in Europe, other major cities including Madrid, Rome, Paris and Barcelona all saw increases of more than €120 a month.
Hong Kong remains the most expensive location in the world for expat rent, with New York keeping its place as the second most costly city for overseas workers.
Earlier this month, a Simon Community study found only 8pc of private rental properties on Daft.ie analysed in a three-day snapshot were available within the Housing Assistance Payments (HAP).
There was a 51pc decrease in the number of properties available to rent in November 2018 (569) compared with Simon Community's first "locked out of the market" study, published in May 2015.