In a country where 70 per cent of 25 year olds are still living at home with their parents – despite many being in full-time employment – we can no longer afford to leave viable housing opportunities on the table.
Ireland’s housing crisis is not just a question of volume; it’s a question of vision. If we are serious about addressing the shortage of affordable urban accommodation, then it’s time to look at the thousands of vacant commercial buildings across our cities and ask the obvious: why aren’t we converting them into residential accommodation?
The answer isn’t lack of demand, or even funding. The problem is that our regulatory framework hasn’t moved with the times, and as a result, Ireland remains an outlier in Europe – blocking modern housing models that are already working elsewhere.
As of 2024, more than 5,700 vacant commercial properties were sitting idle across Ireland. In Dublin alone, 15.3 per cent of office space is vacant, and a staggering 64 per cent of existing office stock is considered at risk of obsolescence. These buildings are often in the exact places where we most need high-density homes – city centres, close to jobs and public transport.
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Instead of being a liability, these buildings could be activated quickly to address our housing shortage. In most cases they already have the infrastructure: utilities, layouts conducive to modern units and proximity to services. If done right, office-to-residential conversions can deliver much-needed housing more quickly, more sustainably and at lower cost than ground-up development.
We have done this at Grayling Properties and know it works. Our development, Rathmines House, was Ireland’s first large-scale office-to-residential co-living project. Originally a former Technological University Dublin office, it was converted in 2023 into 110 high-quality rental units. It is now fully occupied, with strong demand from young professionals who want well-designed, centrally-located housing that supports flexible, modern lifestyles.
The building retained much of its structure, significantly reducing its carbon footprint – a key sustainability advantage over new builds.
Shared amenity spaces such as co-working areas, a gym and communal areas foster community, while individual studios offer privacy and independence.
This model aligns with housing patterns seen across Europe, where co-living, micro-apartments and build-to-rent schemes offer affordable, flexible options for people at different stages of life from young professionals to shared senior living.
Madrid, for example, has expanded from 2,000 to more than 10,000 co-living beds in just two years, catering to professionals, students and remote workers. Cities such as Berlin, Amsterdam and Barcelona all embrace diverse housing types to meet modern urban needs.
Ireland, by contrast, continues to promote a one-size-fits-all housing model that no longer reflects reality and stifles supply.
So why isn’t it happening at scale?
Put simply: policy and planning. Despite the availability of buildings and the clear demand from would-be tenants, converting offices to residential use remains unnecessarily difficult in Ireland.
Planning regulations are still built around traditional housing types, for example, requirements for dual-aspect units (windows on two sides), which existing office footprints often can’t meet. Mandates for private outdoor space (balconies rather than communal rooftop or internal shared space) even though the latter is the norm in many European cities.
Zoning often makes it easier to convert to hotels or aparthotels than residential.
Even Dublin City Council, which has rightly attempted to push back against the hotel boom by rejecting certain applications, has seen its decisions overturned on appeal – not because the intent was wrong but because the planning laws are outdated.
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As a result, developers often find it easier and more financially viable to convert offices into hospitality or short-term accommodation rather than permanent homes. It’s a regulatory environment that incentivises the wrong outcomes.
When it comes to the changes needed, it is not about lowering standards – it’s about updating them to reflect how people live today. The reality is that different housing models suit different people at different times in their lives. Not everyone needs, wants or can afford a semidetached house in the suburbs.
To unlock the potential of office conversions, we need conversion-specific planning guidelines that recognise its unique nature and flexibility on design standards, such as window orientation and shared amenity space (without reducing standards and quality).
A distinct planning category is needed for residential models such as co-living and shared accommodation, particularly where greenfield alternatives are not feasible.
Alignment between local development plans and national housing objectives is also needed, to ensure policies are enabling, not obstructive.
Housing is not just a supply issue. It’s a matter of how we choose to use the space we already have. And right now, the failure to activate vacant commercial buildings is a missed opportunity.
It also has consequences far beyond housing. Ireland’s attractiveness to foreign direct investment – especially from multinationals and tech employers – is increasingly linked to our ability to house skilled, mobile workers in cities. If we don’t offer well-located, affordable rental options, we risk losing talent to more liveable, better-prepared cities abroad.
We have the buildings. We have the demand. We have the need. What’s missing is the policy vision to bring it all together.
If we embrace the flexibility that other European cities already have, we could bring thousands of homes online in the next few years – without building on a single greenfield site. But if we don’t act, those empty offices will remain exactly what they are today: a waste of space.
Peter Horgan is co-founder and managing director of Grayling Properties
