The possibility of vacant commercial real estate being converted into residential property has increased after government lobbying in a bid to tackle Ireland’s housing supply crisis.

According to The Irish Times, Darragh O’Brien, minister for housing, has sought support from Simon Coveney, a cabinet colleague and minister for enterprise, for a plan that would encourage conversion of unused office buildings.

In a letter to Coveney, O’Brien said that the “surge in office construction” had surpassed Celtic Tiger output levels and, combined with pandemic-era working practices, may result in an oversupply of office space.

“Given the strategic, central location of many office sites and the high demand for housing in these areas I believe there is an opportunity for the conversion of some of that underutilised office space into residential units,” O’Brien wrote.

With less than two years until the next general election, political pressure is growing on the government to make progress tackling the housing crisis beyond its Housing For All plan.

The fact that the prospect of conversions is even being discussed reflects the huge demand for residential property in Dublin while the commercial real estate market has largely stalled.

In his letter, O’Brien suggested that he could allow planning exemptions to the demanding “material change of use” rules that would normally apply to repurposing projects. He has already put into effect several exemptions to these rules, including bringing vacant units back into use.

“To respond to this opportunity in a timely manner our planning system needs to be flexible and inexpensive,” he wrote.

O’Brien wants to establish a working group to assess the situation and develop exemptions that “recognise commercial requirements, sound spatial planning and housing need”. The group would report back with recommendations and draft regulations by the summer.