In Dublin, an enclave of young tech employees has helped transform a derelict industrial area into one of the trendiest—and most expensive—neighborhoods in the Irish capital.

Professionals working in Grand Canal Dock at the European headquarters of Google , Facebook and Airbnb are supporting a wave of trendy cafes, bars and restaurants. Dubliners have dubbed the area Silicon Docks.

Demand to live in the heart of the action is soaring. The average rent for a two-bedroom apartment in Silicon Docks was $2,155 in the first quarter, compared with a Dublin average of $1,481, according to figures from property website firm Daft.ie.

Ireland is still emerging from a seismic property bust in 2008. Home prices were cut in half. The banking system was nationalized. The government eventually requested an international bailout to avoid default. In April, average Dublin home prices were still 38.1% below the 2007 peak, according to Ireland’s Central Statistics Office.

But rents in Silicon Docks are 12% higher than 2007. Part of it stems from a citywide housing shortage. It is also because “the younger tech workers are willing to pay a premium” to live in the neighborhood, says Clarie Neary, head of residential lettings at Savills in Dublin. “They don’t want to be anywhere else.”