Property Insights by Johnny Gannon, Fair Deal Property
For generations, towns and cities across Ireland were designed around a simple but powerful idea, people lived where life happened.
Above the shopfronts of our busiest streets, families built their lives. Children grew up within walking distance of schools, shops, and workplaces. Streets were alive not just during business hours, but early in the morning and late into the evening. There was a natural rhythm to town and city living, one that created energy, connection, and community.
Over time, that rhythm has been lost.
Across Galway City, its suburbs, and regional towns throughout the county and beyond, we have witnessed a gradual hollowing out of our urban cores. Upper floors above shops, once vibrant homes, have fallen silent. Many have remained vacant for years, some for decades. At the same time, residential development has shifted outward, with housing estates expanding into suburban and commuter locations.
This shift has created a structural imbalance.
Town and city centres have become increasingly reliant on retail alone, while the residential population that once sustained them has thinned out. The result is something every buyer, seller, and investor in the Galway property market can see clearly, reduced footfall, weaker trading conditions, and a sense that many streets are no longer fulfilling their full potential.
But now, we are at a turning point.
The introduction of the Vacant Above the Shop Grant, which officially opened on 31 March 2026, represents one of the most practical and potentially transformative housing initiatives we have seen in years.
This is not a theoretical policy. It is a direct financial intervention designed to unlock existing buildings and bring them back into use.
Under the scheme, property owners can access up to €95,000 where one residential unit is created above a commercial premises, €115,000 for two units, and up to €135,000 where three or more units are delivered. In addition, an Expert Advice Grant of up to €5,000 is available to support professional services such as architectural design, engineering input, and planning guidance.
The eligibility criteria are deliberately structured to target long-term vacancy. The upper floors must have been vacant for at least two years. The building must retain a commercial element at ground level, even if that commercial space is currently not in use. And the property must be located within a city, town, or village.
Crucially, there is no requirement for the owner to occupy the unit themselves. These homes can be rented out, creating an immediate pathway to increase supply in the private rental sector. There is a 10-year clawback condition attached, ensuring that the scheme supports long-term housing delivery rather than short-term gain.
Even more importantly, these grants can be combined with SEAI supports for energy upgrades, meaning that many of these properties can be transformed into modern, energy-efficient homes while retaining their original character.
From a Galway perspective, the potential impact of this scheme is significant.
Galway City is one of the most supply-constrained markets in Ireland. Demand remains consistently strong, driven by a combination of population growth, a thriving employment base in sectors such as medtech and education, and the continued appeal of the city as a place to live and work.
At the same time, available housing stock remains critically low.
This is where the Vacant Above the Shop Grant becomes particularly relevant.
Walk through Galway City Centre, and you will see it immediately, rows of buildings with underutilised or completely vacant upper floors. These spaces represent hidden housing supply, right in the heart of the city, within walking distance of employment, transport links, and amenities.
Unlocking even a fraction of this stock could have a meaningful impact on supply levels.
And unlike large-scale new developments, this type of housing delivery can happen relatively quickly. The buildings already exist. The infrastructure is already in place. What has been missing is the financial viability to make these projects stack up.
This grant directly addresses that challenge.
For property owners across Galway City and regional towns, this scheme opens up a completely new set of opportunities.
Properties that may have been overlooked or undervalued due to the condition or vacancy of their upper floors can now be repositioned as high-potential assets. With the support of grant funding, owners can convert unused space into income-generating residential units.
From an investment perspective, the numbers can now begin to make sense in a way they often did not before.
Refurbishment costs have been one of the biggest barriers to bringing these properties back into use. With grant support of up to €140,000 available, that barrier is significantly reduced.
For buyers and investors in the Galway property market, this creates an entirely new category of opportunity, mixed-use buildings with strong upside potential.
Beyond individual projects, the broader impact of this scheme could be profound.
One of the biggest challenges in the Irish property market today is not just the lack of new supply, but the lack of liquidity within the existing housing stock.
We have spoken extensively about the “movers’ dilemma”, where homeowners are reluctant to sell because of the difficulty in securing their next property. This has contributed to a collapse in transaction volumes and a reduction in available stock.
By increasing the number of residential units within city and town centres, this scheme has the potential to improve overall market fluidity.
More rental options in central locations can reduce pressure on suburban housing stock. Increased availability of smaller units can provide stepping stones for first-time buyers and renters, freeing up larger homes for families.
In short, it can help the entire system move more efficiently.
While the housing impact is important, the true value of this initiative goes even further.
This is fundamentally about bringing life back into our streets.
When people live in town and city centres, everything changes. Lights come on in upper windows. Streets feel safer. Local businesses benefit from increased footfall. Cafes, restaurants, and independent retailers become more viable.
The presence of residents creates a sense of place that cannot be replicated by retail alone.
For Galway City, this is particularly important. As a cultural and social hub, the city thrives on energy and interaction. Ensuring that its core remains vibrant is essential not just for property values, but for the identity of the city itself.
The same applies to regional towns across Galway and the wider west of Ireland.
These towns already have the buildings, the layout, and the character needed to support thriving communities. What they have lacked is the economic mechanism to bring them back to life.
This scheme provides that mechanism.
What makes the Vacant Above the Shop Grant particularly noteworthy is that it represents a shift towards more targeted, practical policy interventions.
Rather than focusing solely on large-scale construction, it recognises the value of existing assets.
It acknowledges that the solution to Ireland’s housing challenge is not just about building more, but about using what we already have more effectively.
From a policy perspective, this is a significant step forward.
If supported by efficient planning processes and strong local authority engagement, it has the potential to deliver real results on the ground.
The success of this initiative will ultimately depend on uptake.
Property owners, investors, and developers need to recognise the opportunity that now exists. Local authorities need to process applications efficiently and provide clear guidance. Professionals across the industry, from architects to engineers to estate agents, need to support clients in navigating the process.
For buyers and sellers in the Galway property market, this is something worth paying close attention to.
We are at the early stages of what could become a meaningful shift in how housing is delivered in Ireland.
At its core, this is a simple idea.
Bring people back to the centre of our towns and cities.
Use the buildings we already have.
Create homes where life already happens.
If we get this right, the impact will extend far beyond housing supply.
We will see stronger town centres, more vibrant communities, and a property market that functions more effectively for everyone involved.
For Galway City, its suburbs, and regional towns across the county, the opportunity is clear.
Now it is a question of execution.
For more visit www.fairdealproperty.ie