Ireland's commercial vacancy rate soared to a record high of 14.5 percent in the final quarter of 2024, exceeding pre-pandemic levels by 1 percent and representing an increase of over 2,100 commercial units. This translates to more than 30,000 vacant business locations out of a total of 210,894 units nationwide.
The report highlights significant regional disparities. Sligo exhibited the highest vacancy rate at 20.6 percent, followed by Donegal (20.1 percent) and Galway (18.8 percent). Dublin, while at 13.6 percent, still registered a 0.5 percent increase compared to the same period in 2023, with Dublin 2 experiencing the highest vacancy rate within the city at 18.7 percent.
The services sector dominated occupied commercial properties, accounting for 49.4 percent of the total. The retail and wholesale sector followed with 21.9 percent, while the health sector contributed 9.5 percent.
Several factors contributed to the increased vacancy rate. These include the pandemic's impact, shifting consumer shopping habits towards online platforms, and persistent cost pressures impacting businesses and households. Despite a robust economy, population growth, and record employment, the rising vacancy rate contradicts these positive indicators.
Annette Hughes from EY Economic Advisory noted the paradoxical situation: while residential vacancy rates continue to decline, commercial vacancy trends show an opposing upward trajectory.