Ireland to see property market fall 60%

Posted: 28 Nov 2008 09:12:46 GMT

Dropping from €45 billion in 2007 to just €15 billion this year, the Irish property market looks likely to finish 2008 having lost the same proportion of value as the English market.

Compared to the peak year of 2006, however, the falls expected this year will represent a loss of 73 per cent of the previous value, leading to a serious lack of confidence in the market.

Angus Potterton, managing director of Savills, has pointed to the wider issue of the liquidity of the wider money markets as the real cause of banks' reluctance to lend.

"There are signs that something will be done to recapitalise the Irish banking sector but every day that goes by puts more companies out business, pushes up unemployment, reduces tax revenue and brings us deeper into recession," a statement read.

"It is imperative that the government and the banks take immediate action, not just for the 250,000 people in the property and construction sector but for the wider economy."

With buyers unable to afford large mortgages at present, selling a property online could sidestep the costs charged by estate agents, therefore saving buyer and seller money when it is needed most.

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