The vacancy rate of commercial buildings across Donegal increased to 18.2% in December 2023.
That’s higher than the average national rate of 14.3%.
This was the highest level reported by GeoDirectory since the report began in 2013.
Of the towns in Donegal analysed, Ballybofey had the highest commercial vacancy rate in Q4 2023 at 29.4%, while Bundoran had the lowest at 12.7%.
Commenting on the findings of the GeoDirectory Commercial Buildings Report, Dara Keogh, CEO of GeoDirectory, said, “The rate of commercial vacancies in Ireland has hit a new high of 14.3%, continuing the trend of increasing rates in recent years.
“This trend can be attributed to a number of factors such as the rising cost of doing business, changing consumer habits and hybrid working. Consideration must now be given to how some of these vacant properties can be repurposed and reused, in order to avoid long-term vacancy and potential dereliction of these buildings.”
Annette Hughes, Director at EY Economic Advisory, said the latest Commercial Buildings Report finds that vacancy rates have continued to increase, with 20 out of 26 counties recording an increase in commercial vacancy in Q4 2023.
She added “Businesses have been impacted by a series of factors over recent years which have led to challenging trading conditions for many and so this increase is not unexpected. On a more positive note, the continued easing of inflation, ongoing reductions in energy prices and the anticipated cuts in interest rates should hopefully provide some relief for businesses this year.
“Longer term, strategic policy measures such as the forthcoming revision of the National Planning Framework offer an opportunity to influence future growth patterns, incentivising population and development into areas with particularly high vacancy rates.”
At a glance:
GeoDirectory Commercial Buildings Report Q4 2023
· The commercial vacancy rate in Donegal increased to 18.2% in December 2023, higher than the national average of 14.3%
· The national commercial vacancy rate increased by 0.3 percentage points (ppt) to 14.3% in Q4 2023, the highest level reported by GeoDirectory since the report began in 2013
· Of the towns in Donegal analysed, Ballybofey had the highest commercial vacancy rate in Q4 2023 at 29.4%, while Bundoran had the lowest at 12.7%
· At 20.5%, Sligo recorded the highest county commercial vacancy rate, followed by Galway (18.5%) and Donegal (18.2%)
· The lowest commercial vacancy rates were recorded in Meath (10.1%), Wexford (10.5%) and Cork (12.2%)
· Edgeworthstown, Co. Longford was the town reporting the highest commercial vacancy rate at 30.2%, after increasing by 1.8 ppts between Q4 2022 and Q4 2023
