A new report shows that rents rose by 0.3% in the third quarter of the year.
The average rent nationwide now stands at €840 a month, according the report from property website Daft.ie. It means that rents in October were just 2% lower than a year ago and 27% below their peak.
Daft.ie says that the stabilisation in rents is being driven by urban areas, which have in some places - like south county Dublin - increased in the last three quarters in a row.
Rents rose by 0.9% between July and October in Dublin city centre and the North city area, while rents in Cork increased by 0.4%. Galway rents jumped by 3.2%, reflecting seasonal demand.
Outside the main cities however, rents fell by about 0.7%, a continuation of ongoing falls during the year.
Daft.ie's economist Ronan Lyons said the signs that rents are levelling off reflects a better balance between supply on the market and demand.
'The total number of properties sitting on the rental market around the country is down more than a quarter from a year ago. In the cities, the fall is closer to a half,' he stated.
'While some parts of the country still look over-stocked, what is sitting on the Dublin market largely matches the number of properties traded in a given month, a sign that the market is currently in balance,' he added.
