Landowners have been warned that a forthcoming levy will affect a high proportion of vacant sites, although the fee will not be payable until 2019.
The levy is targeted at plots of land that remain undeveloped or derelict and will be based on a register of vacant sites.
However, while this will be established by local authorities from 2017, the money owed by landowners as a result will not be payable until 2019.
"The objective of the levy is to introduce a disincentive to a landowner for leaving a site vacant for many years," said Conor Linehan, head of William Fry's Environment and Planning Group.
‘Incentivise development’
“It is intended that the levy would incentivise and accelerate its development, or encourage its sale to those who have the interest and finance to develop it.”
Mr Linehan was addressing about 200 representatives of Ireland’s commercial property sector at a breakfast on Thursday.
The levy is 3 per cent of market value, and will apply to parcels of land of more than 0.12 acres in size. It is for both residentially zoned land and regeneration land that is left idle.
Des Lennon, director of development land at JLL, also addressing the meeting, said: "Ireland is currently experiencing a chronic shortage in the supply of housing and commercial property, with concerns expressed about rapidly rising rents and the negative impact on Ireland's international competitiveness."
The minimum new housing requirement is 20,000 units a year, although only 8,000 were commenced in 2015.
There is also a shortage in commercial property, with a vacancy rate decreasing from 24 per cent in 2011 to less than 8 per cent last year.
