Re-Building Ireland gets back to re-building

Last week we talked about the draft national guidelines on urban development and building heights issued recently by the Department of Housing, Planning and Local Government, which propose getting rid of maximum height restrictions in the city centre and imposing minimum height restrictions in urban and suburban areas. As mentioned, these guidelines are in draft only and members of the public are invited to contribute their experiences and opinions until 24th September. This is something that we strongly urge members of the industry to get involved in.

The purpose of the changes is to increase urban density, while curbing low-density suburban sprawl. We understand the reason for this, clearly it is the only sustainable way to grow the city, in anticipation of projected population growth over the next few decades and beyond. This more urban-centric population is a global trend and Ireland is not immune.

The goal is clear, what is less clear is exactly how this will be achieved. We are a nation of home builders, not skyscraper developers. The industry has levelled-up in terms of expertise and specialist skills over the past decade, as is needed in the age of digital construction, however, making the leap to six-storey minimum building height will be difficult for the majority of the industry.

This makes the old-school approach of renovating to add value an attractive proposition once again. You might recall, a few weeks ago, that we highlighted opportunities for investors with the capacity to refurbish would-be family homes in and around the capital, particularly high-value redbricks in the south of the city. This is a side of property investing that was largely overlooked in recent years, however, now might be a good time to start assessing vacant, derelict or underused buildings. And we are not the only people thinking about this right now.

TheJournal.ie ran a story earlier this week about a photo exhibition of vacant homes across Dublin, Kildare, Limerick, Louth and Westmeath. The exhibition is designed to make people think about how Ireland’s built heritage can be reused.

We know from the most recent Census figures (2016) that Ireland has a high rate of vacancy  and dereliction (183,312). What might surprise people to know is that this rate is high even in Ireland’s most desirable and expensive areas. For example, in 2016, the vacancy rate in Dublin 2 was 17%.  While the City Living initiative was rolled out to tackle this, there are still an estimated 4,000 to 6,000 potential homes over retail  units across the capital. While grants are available, generally some level of financing is also required and traditional banks have not shown a great appetite for this type of investing. This is certainly a discussion that is worth having with the team here at Lotus Investment Group.

Finally, a walking tour of empty buildings in Dublin will take place tomorrow (Friday) at 1pm, starting from the Irish Architecture Foundation on 15 Bachelor’s Walk and all are welcome.

Ian Lawlor
086 3625482

Director / Business Development
Lotus Investment Group