The story of Tuam’s empty shops is not unique.
Across Galway and throughout Ireland, market towns that once served as thriving commercial hubs are grappling with the same challenge: vacant retail units, declining footfall, changing consumer habits, and an uncertain future for traditional town-centre commerce.
Yet for those of us who grew up in Tuam, the transformation feels particularly personal.
Growing up in the 1980s, I remember a town centre that was bustling with activity. Every street seemed to have its own shop. Independent retailers formed the backbone of the local economy. Shopping was a social activity rather than a transaction. Local businesses provided employment, community identity, and a sense of pride.
My family has been part of Tuam since the 1800s, and like many people who have spent their lives in the town, I have witnessed the gradual evolution of retail and commercial property over several decades.
The arrival of supermarkets altered shopping patterns.
Out-of-town retail parks changed consumer behaviour again.
Then came online shopping, which accelerated trends that were already underway.
The cumulative impact of these changes can now be seen in the growing number of vacant commercial properties throughout Tuam and many other regional towns across Galway and Ireland.
Against this backdrop, the Government’s proposed Derelict Property Tax has emerged as the latest attempt to tackle vacancy and dereliction. While the policy may help address certain aspects of the problem, it is important to recognise that taxation alone will not regenerate our town centres.
The reality is more complicated.
And the solution requires much more than simply penalising property owners.
The Government is preparing to replace the existing Derelict Sites Levy with a new Derelict Property Tax that will be administered directly by Revenue.
Under current proposals, the tax will apply at a minimum rate of 7% of market value, creating a significantly stronger financial incentive for owners to either develop, renovate, sell or repurpose vacant and derelict properties.
The key difference is enforcement.
Historically, local authorities were responsible for identifying derelict sites and pursuing levies. In practice, implementation was often inconsistent and resource intensive.
By transferring responsibility to Revenue, the Government hopes to create a more effective system with stronger compliance and improved collection rates.
For towns such as Tuam, which fall within the first phase of implementation due to their population size, the impact could be substantial.
Property owners who have left buildings vacant or neglected for prolonged periods may now face a much stronger financial motivation to act.
From a policy perspective, that makes sense.
Vacant and derelict buildings create visual decline, reduce investor confidence, discourage commercial activity and negatively affect neighbouring property values.
However, while the tax may encourage movement, it does not solve the underlying economic challenge.
One of the greatest mistakes policymakers can make is confusing symptoms with causes.
Dereliction is a symptom.
Vacancy is a symptom.
The underlying issue is that many traditional retail businesses no longer operate within the same economic environment that allowed previous generations to thrive.
Consumer behaviour has fundamentally changed.
People shop differently.
They travel differently.
They work differently.
Technology has transformed how goods and services are purchased.
Consumers can now compare prices globally, receive deliveries within days and increasingly conduct entire shopping journeys without ever entering a physical store.
These changes have been gradual but relentless.
The consequence is that many businesses which would once have flourished in a town-centre location now struggle to compete.
Taxing an empty building does not reverse those trends.
A change of ownership alone does not guarantee commercial viability.
A vacant shop sold today may remain vacant tomorrow if the economic conditions required for success have not improved.
That is why regeneration requires a broader strategy than taxation alone.
As estate agents operating throughout Galway, we regularly encounter commercial property owners facing difficult decisions.
Many own buildings that have been in their families for generations.
They are often willing to invest.
They care deeply about their towns.
Yet they face significant obstacles.
Renovation costs continue to rise.
Building regulations are increasingly demanding.
Energy efficiency requirements require additional investment.
Insurance costs remain high.
Construction costs continue to place pressure on refurbishment projects.
Even after significant investment, there is often uncertainty regarding whether sufficient tenant demand exists to justify the expenditure.
For many owners, the challenge is not a lack of willingness.
It is a lack of economic certainty.
Introducing a new tax may encourage action in some cases, but it does not automatically create viable commercial opportunities.
If government is serious about town-centre regeneration, support for independent retailers must form part of the conversation.
Retailers remain the lifeblood of successful town centres.
Without active businesses, even the most attractive streetscape quickly loses vitality.
A meaningful programme of rates reductions for businesses willing to occupy vacant premises could make a significant difference.
Targeted grants for shop fit-outs and refurbishments could help reduce entry barriers.
Enhanced support for digital adoption could allow independent retailers to compete more effectively in an increasingly online marketplace.
Marketing initiatives promoting local shopping could help retain spending within regional communities.
These measures would not eliminate all challenges.
However, they would directly support the businesses needed to occupy the very buildings policymakers are attempting to bring back into use.
A vacant property problem cannot be solved without addressing the business viability problem that sits alongside it.
There is another issue emerging quietly beneath the surface.
It is rarely discussed, yet it may prove to be one of the most significant challenges facing towns like Tuam over the next decade.
Many businesses currently operating successfully in town centres do so because the proprietor owns the premises.
There is no commercial rent to pay.
There is no landlord seeking market returns.
The business effectively benefits from a substantial cost advantage.
That arrangement often works well for long-established family businesses.
But what happens next?
What happens when retirement approaches?
What happens when the next generation chooses a different career path?
What happens when there is no successor willing to continue the business?
These questions are becoming increasingly relevant.
Across Ireland, many family-owned businesses are approaching a generational transition.
In numerous cases, there is no obvious successor.
The result is that many apparently stable businesses may disappear not because they are failing today, but because there is nobody available or willing to take them forward tomorrow.
This creates a concerning possibility.
We may already be witnessing the final generation of certain types of independent retail businesses in many regional towns.
One of the unintended consequences of vacancy policies is the temptation to convert every empty commercial building into residential accommodation.
On the surface, this appears logical.
Ireland faces a housing shortage.
Empty buildings exist.
Why not convert them?
In some cases, conversion absolutely makes sense.
Upper floors above shops can provide valuable housing opportunities.
Certain obsolete commercial properties may be better suited to residential use.
Mixed-use development can strengthen town centres.
However, there is a danger in pursuing residential conversion as the default solution.
A thriving town centre requires commercial activity.
It requires cafés, retailers, professional services, restaurants, cultural spaces and local businesses.
If every vacant shop becomes a dwelling, we risk losing the very commercial fabric that gives towns their character.
The result could be streets that appear occupied but no longer function as vibrant economic centres.
That would represent a very different form of decline.
Successful regeneration requires balance.
Housing is important.
Commerce is equally important.
Communities need both.
The most successful regeneration projects across Europe have one thing in common.
They recognise that town centres are ecosystems.
Every element influences every other.
Retail supports footfall.
Footfall supports hospitality.
Hospitality supports social activity.
Social activity attracts investment.
Investment supports property values.
Property values encourage further investment.
Regeneration works when multiple pieces move together.
That means improving public spaces.
Supporting local businesses.
Investing in infrastructure.
Encouraging residential occupancy.
Enhancing transport connections.
Promoting tourism.
Supporting entrepreneurship.
Creating reasons for people to spend time in town centres rather than simply passing through them.
There are no shortcuts.
And there are certainly no single-policy solutions.
The future of towns like Tuam matters far beyond their immediate boundaries.
Strong regional towns are essential to balanced economic development throughout Galway.
They provide housing alternatives to larger urban centres.
They support local employment.
They sustain rural communities.
They attract investment.
They contribute to quality of life.
Property values are ultimately influenced by confidence.
When people believe a town has a future, they invest.
When confidence declines, investment follows.
That is why regeneration matters not only for commercial property owners but also for homeowners, investors, developers and local communities.
The long-term health of Galway’s property market depends on the vitality of its towns as well as its cities.
The introduction of the Derelict Property Tax represents a meaningful policy shift.
It may encourage some property owners to act.
It may bring additional buildings back into productive use.
It may improve accountability.
All of those outcomes would be welcome.
But taxation should be viewed as only one part of a much larger conversation.
The real challenge is not simply empty buildings.
It is creating the economic conditions that make those buildings worth occupying.
Without meaningful support for local businesses, independent retailers and town-centre investment, vacancy will remain a recurring problem regardless of who owns the property.
A well-known comedian once remarked that there is no such such thing as towns any more
For those of us who care deeply about places like Tuam, that prediction should serve as a warning rather than a prophecy.
If we want thriving town centres in the future, we must invest not only in buildings but in the businesses, communities and people that give those buildings purpose.
Johnny Gannon is the founder of Fair Deal Property Auctioneers and Estate Agents. For advice on buying or selling in the Galway market, contact Fair Deal Property on 091 394593.