Market rents in Donegal increases 122% from their lowest point

In Donegal, market rents were on average 22.2% higher in the second quarter of 2023 than a year previously. The average listed rent in Donegal is now €1077, up 122% from its lowest point.

The author of the report Ronan Lyons, who is the Associate Professor in Economics at Trinity College Dublin said: “The figures in this latest rental market report indicate something of a split in market conditions. In Dublin, the construction of new rental housing – together perhaps with the effect of layoffs in some larger employers – has led to an easing of pressure in the open market. Conditions remain far from benign for prospective tenants but the mismatch between strong demand and weak supply is not as stark as in recent quarters.”

Almost 60 times more Airbnbs than rental homes available in Donegal

The high proportion of Airbnbs compared to rental properties is particularly high in counties that are known to attract tourism, particularly Donegal, Clare, Kerry and Cork county

He added that conditions outside the capital prove challenging as there are fewer rental homes: “ Outside the capital, however, the lack of new rental homes means that the imbalance between supply and demand is still there. Indeed, in Connacht-Ulster, rents jumped over 6% in just three months pushing the annual rate of inflation to its highest level ever recorded (21.2%) in a series stretching back to early 2006.”

Almost 60 times more Airbnbs than rental homes available in Donegal

The high proportion of Airbnbs compared to rental properties is particularly high in counties that are known to attract tourism, particularly Donegal, Clare, Kerry and Cork county

Earlier this month, a report found that there were only 31 properties to rent in Donegal in comparison with 1,796 Airbnbs available at the same time. The report by the Irish Examiner found that there were significantly more short-term rentals in Donegal than long-term rentals. It was found that other counties which attract a lot of tourists were similar.