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22 Jan 2022

Price hike in property market in Donegal

Steady increase in house prices in the region

The average price of a home in Donegal is now €178,000, 56% above its lowest point, according to the latest sales report from daft.ie. In Donegal, prices in the final three months of 2021 were 12% higher than a year previously, compared to a rise of 14% seen a year ago.

The average price nationwide in the final quarter of 2021 was €290,998, up 0.6% on the third quarter of 2021 and just 21% below the Celtic Tiger peak.

 

The largest increase in prices in the country was seen in Connacht-Ulster, where prices rose by 14.6% during 2021.

Economist at Trinity College Dublin and author of the report, Ronan Lyons, said: “Inflation in listed prices continues to cool from its mid-year peak. Nonetheless, at nearly 8% for the year, it remains stubbornly high. This reflects a combination of unusually strong demand and on-going weak supply. Demand for homes to buy, which had been strong anyway from the mid-2010s, has received an unexpected boost during the Covid-19 pandemic, with prospective buyers able to tap into ‘accidental’ savings, as expenditure fell during the lockdowns.

"Meanwhile, both new and second-hand supply remain weaker than expected before the pandemic. While the pandemic has changed some particulars, the general health of the housing market is largely unchanged – it is one characterised by weak supply in the face of strong demand. For that reason, additional supply – not just of homes for sale but also of market and social rental housing – remains key to solving Ireland’s chronic housing shortage.”

The full report is available here.

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