Demand for apartments in Donegal has led to a spike in prices, according to a new report from MyHome.ie.
The price of apartments in Donegal has jumped by 33% since the first quarter of 2020.
The average asking price for a two-bed unit is now €95,000.
Other coastal counties recorded a similar increase in apartment prices, with Kerry and Limerick up by 25% and 21.6% respectively.
Donegal apartments currently for sale on MyHome.ie have asking prices ranging from €180,000 for a seaside apartment in Bundoran to €58,000 for a two-bed in Letterkenny town centre.
Other apartments by the water in Ramelton and Dunkineely are also on the higher end of the scale.
Interest in apartments in Donegal doesn’t reflect the overall property market in the county, however. The report shows that average property prices fell 3% to €155,000 in Donegal in Q1 2021.
Report author Conall Mac Coille, chief economist at Davy, noted that housing market had persevered through Level 5 lockdown restrictions, with residential transactions actually up on the same period of 2020 – in part because the summer trading period was delayed last year with transactions being finalised in 2021. However, estate agents have also adapted their businesses to the restrictions.
MacCoille said: “All the data suggests that housing market activity should bounce back rapidly once the restrictions are lifted. Mortgage approvals in January were up 12 per cent on the year, with the average approval up 8 per cent to a fresh cyclical high of €256,000. So there is no evidence of tightening credit conditions holding back home buyers.”
Angela Keegan, Managing Director of MyHome.ie, said interest in the property market is booming.
“Traffic through the website is up 13-30 per cent on different metrics, such as users, sessions and page views,” she said. “ As such, it is crucial that the construction sector be allowed to return to normal activity in order to address this obvious demand and safeguard the market as we emerge from Covid.”
Featured image: Eden Bay Apartments, West End, Bundoran are on the market for €100,000 – €180,000 per unit.
