Higher yields on small apartments in Dublin
Residential Valuation Specialist | March 11, 2022
|Last Updated: Mar. 11, 2022|
|DUBLIN 1||COST (€)||YIELD (p.a.)||PRICE SQ.M. (€)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|DUBLIN South Country|
|All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Daft.ie Definitions: Data FAQ See also: Update Schedule
The Gross rental yield is the rent the landlord will earn - before taxation, vacancy costs, and other costs - compared to the property´s purchase price.
In Dublin, specifically Dublin 1, Dublin 3, Dublin 6W, Dublin 7, and Dublin 8, gross rental yields range from 6.19% to 7.96%, which are generally considered excellent yields. One-bedroom apartments will earn relatively more than two-bedroom apartments (return-on-investment). To earn higher returns, buy smaller units.
How much do apartments cost? Dublin´s average apartment prices tend to be approximately around EUR 200,000 (for a 1-bedroom apartment).
- In Dublin 1, a 1-bedroom apartment typically costs around EUR 239,000 and can be rented out at EUR 1,586 per month, earning a rental yield of 7.96%.
- In Dublin 3, a 1-bedroom apartment typically costs around EUR 280,000 and can be rented out for EUR 1,505 per month, earning a yield of 6.45%.
- Dublin 6W is somewhat close to apartment prices in Dublin 3. A 1-bedroom apartment costs around EUR 290,000 and can be rented out for EUR 1,497 per month, earning a yield of 6.19%.
- In Dublin 7, apartment prices and rents are cheaper than the areas mentioned above and with surprisingly higher returns. A 1-bedroom apartment costs around EUR 232,000 and can be rented out for EUR 1,469 per month, earning a yield of 7.60%.
- In Dublin 8, a 1-bedroom apartment costs around EUR 242,000 and can be rented out for EUR 1,497 per month, earning a yield of 7.42%.
You can generate higher apartment yields in low-cost areas such as Dublin 1, where you can earn a rental yield of 7.96% for a EUR 239,000-worth one-bedroom apartment. And an excellent yield of 7.60% for a one-bedroom apartment in Dublin 7. (Please remember that these yields are gross; net yields will be less). Large houses (4 and 5 bedrooms) tend to earn relatively low yields.
Round trip transaction costs are high for buyers of residential property in Ireland. See our Residential transaction cost analysis for Ireland.
RENTAL YIELDS ACROSS IRELAND
|Dublin City Centre|
|North Dublin City|
|South Dublin City|
|North Dublin Country|
|South Dublin Country|
|West Dublin Country|
|Dublin Commuter Counties|
|Source: The Daft.ie Rental Report, 2014, August.