Properties priced under €100,000 are being snapped up across the Gaoth Dobhair Gaeltachta, according to property agent Eamonn Mac Giolla Bhríde.
Mr Mac Giolla Bhríde said a lot of the properties are being purchased by people from the north, England and other areas: “There is a huge demand for houses in the area. When the lockdown occurred last year, I thought house prices would fall but the opposite is true.”
Making a profit
He added that some people are buying old houses, making them up and selling them on.
The auctioneer said that the category where houses are worth under €100,000 on his books is almost gone: “They are now buying houses priced between €100,000 and €150,000.”
The native Irish speaker said one of the reasons that people are choosing to buy property is due to the high cost of building.
Cost of building very high
Last year three newly-married couples who had been given sites for free by their family, walked away from the sites to buy second-hand homes.
“The cost of building has gone through the roof. It is almost impossible to build a house now.
“There are a lot of costs associated with building before you even place a spade in the ground,” he said.
Mr Mac Giolla Bhride said that building and energy regulations are increasing the price of building homes. He said that even with a site you need to pay council development fees, get water and electricity in and finish the build.
The Derrybeg man who has a wealth of experience in terms of property says he has not been given one single home to put up for rent in three months.
“I used to have say around 12 or 20 properties to rent,” he said.
He feels the reasoning for this are the conditions that are associated with renting properties.
He added that complexities surrounding the eviction of tenants has also become a serious bone of contention for landlords.
He said that people with properties prefer to use them for Airbnb rather than use them as rental properties.
Increase in Bundoran
Meanwhile, the average price of property in Bundoran increased by 4.8% in the first quarter of 2021, according to a national survey by Real Estate Alliance (REA).
The price of the average second-hand three-bed semi in county Donegal has increased by 2.4% to €105,000 in the last three months and the forecast looks bright for sales: “We would anticipate a pent up demand and, once restrictions are lifted, strong activity in both sales and listings,” Paul McElhinney of REA McElhinney, Milford said.
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