This is according to the latest issue of the Dublin Economic Monitor which has been launched today.
A joint initiative of the four Dublin local authorities, the Monitor focuses on the Dublin region, and tracks 15 key economic indicators.
It captures data from the height of the boom to the economic crash and the subsequent recovery.
These indicators show that consumer & business confidence rise as the capital’s labour market improves further.
Although the global economic environment continues to face considerable uncertainty, not least with a General Election looming in the UK, the Dublin economy is performing strongly.
The Capital’s unemployment rate is a key positive feature of the Dublin’s recent economic performance.
The monitor shows that Dublin’s unemployment rate dipped for a second consecutive quarter in the fourth quarter 2016, falling below 7% for the first time in over 8 years.
At 6.3%, the rate was 1.5% percentage points (pp) below the same period in 2015 and reflected strong employment levels which had grown by almost 19,000 jobs year on year.
The Dublin unemployment rate was 0.8pp below the national rate of 7.1% in the quarter.
Residential rents in Dublin for both houses and apartments rose markedly in Q4 2016, widening the gap between the capital and the rest of the country.
The year on year growth rate of house rents accelerated to 6.6% and brought average rent levels to in excess of €1,500 per month.
The year on year growth rate for apartments was even stronger at 11.1% as average rents stood at €1,448.
This was €145 above the same period in 2015. Although positive, growth rates outside Dublin were lower in the fourth quarter, with the result that the gap between rents in the capital and the rest of the country widened.
Furthermore, residential property prices in Dublin continued to increase at a year on year rate of over 5% between November 2016 and January 2017.
Residential prices in the capital stood at 91.2 on the index in January, 5.3% above the same month in 2016.
The trend of stronger property price growth rates outside Dublin continued into 2017 with year on year growth exceeding 11% in each of the last three months.
Commenting on the report, Economic Consultant at DKM Economic Consultants, Lorcan Blake said:
“Dublin’s economic performance is gathering pace, with substantial progress made in the labour market and indicators pointing to robust commercial activity, but rising rents and weak housing supply pose significant challenges for many of the capital’s residents.”