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Is Planning Policy Blocking Rural Housing in Galway? Why Buyers in Tuam, Athenry and Loughrea Are Being Locked Out

Property Insights by Johnny Gannon Founder Fair Deal Property

There is no shortage of land across Galway.

From Tuam to Loughrea, from Athenry to Claregalway, and across Oranmore, Moycullen and beyond, there are countless parcels of land located within minutes of thriving towns and communities. These are not remote, disconnected sites. They are well-positioned, often close to schools, transport routes, employment centres and family networks.

And yet, for many property buyers in Galway, building a home on these lands has become increasingly difficult.

At Fair Deal Property, we are seeing a growing number of enquiries from buyers actively seeking sites to build homes in Tuam, Athenry, Loughrea and surrounding areas. Many of these buyers are not speculative developers. They are local people, families, and first-time buyers who want to build a home close to where they grew up.

But despite strong demand and willing landowners, planning permission is often refused.


Why It Is So Difficult to Get Planning Permission in Galway’s Urban Fringe

One of the key issues affecting rural housing in Galway is the classification of land within urban fringe zones.

Areas located just outside towns such as Tuam, Claregalway, Oranmore and Athenry are often subject to stricter planning rules than more remote rural locations. These policies are designed to prevent urban sprawl and ribbon development, which are valid and important planning objectives.

However, in practice, they are creating unintended consequences.

We regularly see situations where individuals are unable to secure planning permission on land located within a short distance of their family home, sometimes within a kilometre, simply because the land falls within a restricted planning category.

At the same time, planning permission can be more easily obtained in more remote parts of North Galway, including areas further from key services and infrastructure.

This creates a contradiction.

The planning system is encouraging development in locations that are less sustainable, while restricting it in areas that are better connected and more suitable for residential use.


The Impact on Property Buyers in Tuam, Loughrea and Athenry

For property buyers across Galway, this is having a direct and measurable impact.

Buyers who would prefer to build a home close to Tuam, Athenry, Loughrea or Claregalway are being forced to consider alternative options:

  • Moving further away from their local community
  • Purchasing existing homes in already competitive markets
  • Delaying their plans altogether

This is particularly challenging for first-time buyers, who are already facing affordability constraints and limited availability of suitable homes.

The demand to build is there.

The ability to build is not.


How Planning Restrictions Are Affecting Housing Supply in Galway

The consequences of these planning constraints extend beyond individual buyers.

They are having a wider impact on housing supply across Galway.

When people are unable to build new homes, they remain in their existing properties for longer. This reduces the number of homes coming to market, particularly in towns like Tuam, Athenry and Loughrea where demand is already strong.

This lack of movement creates a bottleneck.

Fewer homes are listed. Buyers have fewer options. Competition increases. Prices remain under pressure.

In other words, planning restrictions are not just limiting new supply, they are also restricting existing supply from being released back into the market.


Why Galway’s Regional Towns Are in High Demand

There has been a clear shift in buyer behaviour across Galway in recent years.

Towns such as Tuam, Athenry, Loughrea, Claregalway, Oranmore and Moycullen have become increasingly attractive for buyers seeking:

  • Better value compared to Galway City
  • More space for family living
  • Access to strong local communities
  • Improved work-life balance through hybrid working

These towns are no longer seen as secondary locations. They are now central to the Galway property market.

But supply has not kept pace with demand.

And planning policy is a key part of that issue.


Is the Planning System Solving the Right Problem?

There is no doubt that planning regulations exist for good reason.

Protecting the countryside, preventing uncontrolled development, and ensuring sustainable growth are all essential objectives. No one wants to see poorly planned ribbon development or unchecked urban sprawl.

However, the current system raises an important question.

Is it achieving the right balance?

Because what we are seeing on the ground suggests that the system may be too restrictive in the areas where housing is most needed, and too permissive in areas where development may be less sustainable.


A More Balanced Approach to Rural Housing in Galway

There is a clear opportunity to take a more balanced approach.

A system that allows people with genuine local connections to build homes close to towns like Tuam, Loughrea, Athenry and Claregalway could deliver several benefits:

  • Increased housing supply in well-located areas
  • Greater movement within the property market
  • Stronger, more sustainable communities
  • Reduced pressure on urban housing demand

This does not mean removing planning controls altogether.

It means refining them.

Allowing for carefully considered, well-designed homes in appropriate locations, particularly where there is clear local demand and strong community ties.


Unlocking Housing Supply in Galway Starts with Movement

One of the most overlooked aspects of the housing crisis is movement.

A healthy property market depends on people being able to move, to trade up, to downsize, and to make life-stage decisions with confidence.

When planning restrictions prevent people from building their next home, that movement stops.

And when movement stops, the entire system tightens.

Unlocking the ability to build, even in a targeted and controlled way, could have a significant impact on the overall housing market in Galway.


Conclusion: A Missed Opportunity or a Future Solution?

The demand is there.

The land is there.

The buyers are there.

What is missing is the ability to connect all three.

Across Tuam, Athenry, Loughrea, Claregalway, Oranmore and Moycullen, there is a clear and growing appetite for building homes close to established communities.

With the right planning approach, this could become a meaningful part of the solution to Galway’s housing challenges.

Not the entire solution.

But a significant one.

Because sometimes, addressing the housing crisis is not just about building more.

It is about allowing people to build in the right places.


👉 For more visit www.fairdealproperty.ie

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