The chief executive of IRES Reit - a 457m property investment fund - says he expects expects rents to rise by up to 10 per cent this year; 3 per cent next year and to stabilise after that.

David Ehrlich also said yesterday that it was frustrating to hear about shortage of homes in a situation where the planning system was relatively inflexible about the heights and density of new apartment schemes.

Rents on company holdings range from up to €2,500 in the upmarket Marker Residence in Dublin’s Docklands to just under a €1000 for a two bed in Tallaght.

IRES Reit is quoted on the stock exchange and enables shareholders to invest indirectly in the property market in Ireland. It focuses almost exclusively on the residential market based on the model of its largest shareholder, Cap Reit of Canada.

Established just over a year ago, it will soon own up to 1,600 apartments in the Greater Dublin Area and is planning to raise over €300m in bank debt to acquire more, including sales of NAMA-controlled properties