Donegal: Scarce supply means a 12pc rise – and similar house price gains are forecast for 2022

This period property at The Mall, Ramelton, sold for €450,000

January 22 2022 02:30 AM

How much is your House worth in 2022?

Donegal prices are up 12pc on average, but there are big variations depending on the size and location of houses.

While three-bed semis are up only 4pc, five-bed detached homes have risen by a massive 35pc from €262,000 to €355,000 as buyers seek out larger properties at prices which are still very affordable by national standards.

This is a county of two halves. There’s the more rugged northern region with the town of Letterkenny at its heart, and the equally beautiful but slightly tamer south with Ballyshannon, Donegal town, Bundoran, Glenties and Pettigo,

And while the property news has been dominated by the mica crisis, the other story is one of rising values across all properties, including ones that have been hitherto tough to sell.

Average Price €273,000
Areas Letterkenny, Bundoran, Donegal Town, Gweedore
Up + 12%
One Year Forecast + 12%
Assessing Agent Property Partners Paul Reynolds,Letterkenny; Cormac Meehan, Bundoran

First-time buyers, relocators, trader-uppers and investors, in that order, are the main drivers in the market.

Remote working has brought London, Dublin and Belfast-level salaries to parts of rural Donegal as workers move from the cities.

House Type	2021	2022	2023
3-BED SEMI IN TOWN	€149,000	€155,000	€175,000
4-BED SEMI IN TOWN	€161,000	€180,000	€200,000
4-bed Detached	€261,000	€270,000	€315,000
5-bed Detached	€262,000	€355,000	€380,000
3-bed Bungalow In Town	€178,000	€200,000	€210,000
3-bed Bungalow Outside Town	€210,000	€240,000	€260,000
Detached 2000+ Sq Ft	€336,000	€365,000	€400,000
Holiday Home	€207,000	€240,000	€250,000
Two-bed Apartment	€68,000	€85,000	€100,000
2-bed Apartment (coastal)	€92,000	€100,000	€110,000
3-bed Terrace	€89,000	€100,000	€115,000
2-bed Cottage	€90,000	€120,000	€130,000

South Donegal-based estate agent Cormac Meehan says 2021 saw properties that had sat on the market for a long time begin to attract offers as supply tightened.

Three-bedroom semis average €155,000 and three-bedroom bungalows are now at €240,000.

Edge of town bungalows and dormers, even ones that had been on the market for a while, were very popular among first time buyers.

Meehan says this is largely because there are very few new developments coming on stream.

Property Hotspot: Ballyraine, Letterkenny

Letterkenny IT has just acheived university status as part of the new ATU which will help atract investors to the area.

And towns like Bundoran are proving increasingly attractive to younger buyers in the tech and life sciences industries.

Further north, Letterkenny, with its population of 20,000, could see some new home supply following an application recently submitted by George Doherty Construction for 142 houses and 16 duplexes for a site at Creevesmith. Development was first mooted at this site back in 2006.

And a sign that the last vestiges of the ghost estate legacy are being brushed away in Donegal is a recent application to the Council by McHugh Brothers seeking permission to demolish 21 partially built houses at Navenny in Ballybofey to make way for 24 new homes.

Our experts expect the same level price growth to run at 12pc over the course of this year.