Daft.ie said the high supply of rental stock has led to a 2.2% fall in rents over the last three months.
The data has been generated from properties listed on Daft’s website.
Areas outside big cities have sustained the biggest impact of the influx in rental stock.
Rents in Munster, Connacht and Ulster have dropped around 3% and 6% from their 2007 levels.
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The average rental prices in Irish cities have held their value since last year.
They did experience a rise during the second half of 2007, with rents levelling out in the past few months.
Daft.ie Economist Ronan Lyons said, despite the fact demand is holding up well, rents look set to fall for the rest of the year.
Mr Lyons suggested this dip could possibly lead into 2009, as the number of rental properties coming on to the market is increasing every month.
Students have experienced the largest variances in rental costs across the country, according to the Daft.ie report.
Despite rentals charges in the student market being driven down, the report said there is still a difference according to location.
The report found that a student at DCU staying near the college will pay an average of €525 per month for a double room, while UCC students in Cork will pay less than €400.
In Limerick UL students will pay on average €309 for a double room while students at Trinity College will pay €649 for a double room in Dublin city centre.
(PR/NS)
