The latest study of monthly rental figures show a drop of 3.2% over the course of 2010. This was well above the national average, which saw a drop of just 0.6%, according to a report released this week by Daft.ie.
The good news for anyone wanting to rent here is that they’ll pay less than in most other places in Ireland. The average monthly rent charges in Donegal is €561, compared to €620 in neighbouring Sligo and up to €1,300 in parts of Dublin.
The bad news for Donegal property investors who want to rent out apartments or houses, is that rental incomes in rural areas are not stabilising as quickly as in cities. The county’s 3.2% drop in rentals is bang in the middle of the spectrum outside urban areas, with Leitrim seeing a the worst drop in rental incomes - 7.1% and Offaly being least affected, with no change at all in rent charges over the course of the year.
Lorcan Roche Kelly, and economic researcher who prepared the report for Daft.ie, commented: “It would seem that after six turbulent years (rapidly rising rents cause as many, if different, problems to rapidly falling rents), the Irish rental market may be returning to an even keel. Like everyone else, renters want to have clarity on what their future expenses will be and don’t want to feel like they are over-paying for what they have. Reduced volatility in rents will provide reassurance in both cases.”
Meanwhile, the Sunday Times reported that houses prices in Donegal fell by 11% last year, compared to a drop of 19% in 2009. This was in line with the national average decrease this year of 12%.