Investment in commercial property plunges 89%

INVESTMENT in commercial property in Ireland has plunged 89% from €392 million to almost €42m in the first half of the year.

Property firm, CB Richard Ellis, which compiled the figures, said that the first six months of this year represented an unprecedented period in the Irish property investment market as a lack of bank funding and plunging values had a severe impact on investment activity.

It said that while property values in the Irish market have fallen considerably in the last 12 months, transactional activity has effectively dried up because of a lack of bank funding to enable potential investors to purchase at the new discounted pricing levels.