The first six months of 2009 represented an unprecedented period in the Irish property investment market with only EUR 41.6 mln invested over the period. The slump in transactional activity reflected curtailed bank funding and a lack of clarity regarding values which had a severe impact on investment activity, according to a recent report by adviser CB Richard Ellis.
The first six months of 2009 represented an unprecedented period in the Irish property investment market with only EUR 41.6 mln invested over the period. The slump in transactional activity reflected curtailed bank funding and a lack of clarity regarding values which had a severe impact on investment activity, according to a recent report by adviser CB Richard Ellis.
Commercial property values in Ireland are down substantially from peak commercial property values and have declined very significantly in the last 12 month period. Most of the adjustment occurred as a result of rapid yield adjustment in the latter half of 2008 in response to a lack of debt funding.
However, investor demand is beginning to show signs of improvement, CBRE said. 'The first six months of 2009 have been difficult but we are now beginning to see some engagement between buyers and sellers in the Irish investment market. Considering the very significant value adjustments that have taken place we expect to see a small number of transactions concluded in the second half of the year with international investors increasingly interested in investment opportunities in the Irish market.'
