The number of vacant properties around the world is alarming, and it’s not just an eyesore, but also a massive waste of resources. Renovating these properties is one way to tackle the issue, but is it financially viable? According to a recent report, only a quarter of vacant properties are financially feasible for renovation. This finding raises concerns about how we can effectively utilize and repurpose these properties and, perhaps more importantly, how we can prevent them from falling into disrepair in the first place. In this article, we will explore the report’s findings and the potential implications for addressing the global issue of vacant properties.
A new report from the Society of Chartered Surveyors Ireland (SCSI) has found that only a quarter of vacant or derelict properties in the Republic are financially viable for renovation. The study highlights the high costs and regulatory barriers faced by individuals attempting to revitalize empty properties. Of the 20 possible renovation projects assessed, only five were deemed financially viable to renovate. The market value of the refurbished property must be greater than the starting market value plus the cost of renovation for a renovation project to be considered financially viable. However, the SCSI noted that if refurbishment scheme grants were increased from €50,000 to €100,000, the number of properties “becoming viable almost doubles.” The report found that properties in more affluent areas were more financially viable for renovation because they commanded higher market values. The repurposing of vacant or derelict buildings could boost a town center or main street and provide much-needed accommodation. The Government is preparing to introduce a new vacant homes tax to improve the supply of residential properties.
In conclusion, the report’s findings highlight the challenges faced by those seeking to bring new life to vacant properties. With only a quarter of these properties deemed financially viable for renovation, it’s clear that there’s no easy solution to this problem. Nonetheless, it’s essential to continue efforts to revitalize neighborhoods and create affordable housing opportunities. Whether it’s through tax incentives, grants, or training programs, we must work together to find new and innovative ways to make these properties economically feasible to transform from empty eyesores to vibrant homes.
