‘Relocation revolution’ to fuel rise in property prices in Donegal

written by Rachel McLaughlin January 10, 2021

A wave of city workers moving home to their native counties is expected to fuel the current rise in house prices throughout 2021, according to a nationwide survey of estate agents.

Property prices in Donegal are predicted to rise by 4% in 2021, after a rise of 2% in 2020.

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Agents have identified boomerang buyers – those who previously travelled home for the weekend and then back to the capital, as leading the charge in a “relocation revolution” that is changing the face of house buying nationwide.

A survey carried out for the Irish Independent by the Real Estate Alliance group has found that agents throughout the country expect prices to rise by 4.4% on average in the next 12 months.

“Quality broadband and remote working possibilities have replaced commuting strategy and location as the drivers of an extraordinary market which is outperforming all expectations – despite the Covid crisis,” said REA spokesperson Barry McDonald.

“Nationwide we are seeing the same phenomenon of people returning to their roots to live –  safe in the knowledge that they can work from home.

“This has not lessened demand in Dublin with a massive urgency among a growing cohort of buyers, with the October mortgage approval rates up by 15% year-on-year, according to the Banking And Payments Federation Ireland, but supply going in the other direction.

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“This year lending restrictions (Central Bank rules) and Brexit uncertainty will prevent runaway growth, but a shortage of suitable properties will continue to put upward pressure on prices over the coming 12 months.”

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