Donegal recorded the highest commercial vacancy rate in the State in the second quarter of this year.
The GeoDirectory Commercial Vacancy Rates Report shows the rank here is 20.7%, meaning that over one in five commercial properties in the county lie vacant. That figure is over six points higher than the national rate of 14.5%. The analysis, prepared by EY, found that the commercial vacancy rate in Donegal increased by 0.4 percentage points compared to the same period in 2025.
Of the urban areas in Donegal surveyed, Ballybofey again had the highest rate of commercial vacancies (34.5%), while Bundoran had the lowest at 14.6%.
Nationally, Ballybofey had the second highest rate after Shannon, Co. Clare, which is at 34.9%. A specialist ‘Town Team’, working alongside Donegal County Council, has been established to tackle the issue in the Twin Towns.
Commenting on the findings of the latest GeoDirectory Commercial Buildings Report, Dara Keogh, CEO of GeoDirectory, said, “The national commercial vacancy rate has edged down slightly to 14.5%, marking our first year-on-year drop since GeoDirectory began reporting on this data in 2013, the broader picture remains one of significant local variance. With over 30,611 commercial units lying vacant across the country and 13 counties still seeing vacancy increases, commercial property owners and local high streets need to continue to adapt to shifting consumer habits.”
Simon MacAllister, Partner at EY Ireland said, “While the decline in the national commercial vacancy rates is modest, it is significant as it marks a break from a long period of steadily rising commercial vacancies since 2013. The data highlights a growing divide between areas benefiting from population growth, employment and investment, particularly in the East, and those that continue to face challenges sustaining commercial activity, especially in the West and Northwest. This underlines the need for sustained investment and policy measures to support town centre vitality and long-term economic growth.”