Budget 2026 measures will help end vacancy and dereliction in Dublin – Geoghegan

Ambitious and targeted measures announced in Budget 2026 will tackle vacancy and dereliction across the capital city, a Fine Gael TD has said.

Deputy James Geoghegan, Fine Gael Dublin spokesperson said the enhancement of the Living City Initiative is significant. This allows property owners to claim tax relief on the cost of refurbishing or converting eligible buildings in designated city areas by offsetting those expenses against their income or corporation tax over several years.

Deputy Geoghegan said this measure has the potential to transform Dublin’s city centre, as well as its towns and villages.

The Living City Initiative will be:

• Extended to 2030 and apply to buildings constructed before 1975 (previously 1915);
• Expanded to include the repurposing of above-the-shop units;

In addition, the maximum relief available will rise from €200,000 to €300,000 where works are carried out by enterprises, with an extended timeframe for claiming relief.

“There are almost 9,000 vacant residential units in our capital, including 4,000 lying empty in the city centre. Exempting rental income from corporation tax and the VAT reduction on construction materials will make redevelopment more affordable and sustainable.

“Additional corporation tax incentives for construction costs, including the conversion of office blocks to apartments will finally make it viable to convert old offices into thriving new residential centres. Up to 64% of existing office space in Dublin is at risk of obsolescence. This suite of measures to make apartment construction more affordable can transform streets that are empty at night into bustling neighbourhoods within a few years.

“The introduction of a new Derelict Property Tax, to be enforced by Revenue, will be a game-changer for tackling dereliction in Dublin.

“There are over 130 derelict properties in the Dublin City Council area alone. Having Revenue, rather than local authorities collect this tax will ensure greater compliance and faster results. Revenue’s proven enforcement capability will help move derelict sites more quickly towards renovation and construction, while also driving local authorities to identify and list more derelict properties on their registers.

“The Budget sends a clear message: vacancy and dereliction will no longer be tolerated in our capital city. These measures begin the work of restoring pride in Dublin’s streets, bringing people back to live in the city centre and ensuring Dublin is the vibrant, dynamic city it should be.”