TRENDS:JUSTYNA Gudaniec and her three-year old daughter rent an apartment above a pub on Meath Street, Dublin 8 that has a karaoke night every week until the early hours.

Originally from a quiet village in Poland, she says she likes living in a busy, vibrant part of the city. Justyna has lived in the apartment for six years and loves it. "I'm close to everything, shops, markets where I can buy fresh meat and fish and there's a Lidl on Thomas Street," she says. "As a single parent it's really handy to be able to do shopping on my doorstep". She pays €850 a month for a spacious, two-bed apartment and plans to stay in the city centre.

Letting agent Igor Fleming of Dublin Lettings says families renting in the city centre tend to be foreign nationals like Gudaniec, or people who have just had a baby and are moving up from a one-bed to a two-bed. "The city-centre rental market is mainly made up of young professionals and couples. Apartments tend not to be suitable for families in terms of storage and size. And some management companies in apartment blocks don't allow children."

In June, rents in the city centre had fallen 8 per cent on the previous year but the rate of decline has slowed and the city-centre rental market is busy. Economist Geoff Tucker says the city centre is the most active part of the market in Dublin and its strength, despite the property downturn, is not just down to first-time buyers opting to rent for longer, but to the fact that the pool of tenants includes a mix of young professionals, college students and foreign nationals. There is a good stock of clean, modern apartments in the city centre, many of which were originally intended for the residential sales market.

“Agents are all saying they are out the door with lettings and this is helping keep many businesses afloat,” says Tucker. Currently the average rent for a one-bed in north city centre is €800 while the rent for two-beds is €1,050. In Dublin 2, one-beds average €900 while two-beds are €1,200. Agent Owen O’Reilly says there’s a lack of supply of good quality two-beds in Dublin 2 and 4 because some people in the market to buy “are deciding to rent for another 12 months while others are looking to stay on a month-by-month basis. Landlords don’t like it but if they’re good tenants, they tend to be flexible.”