All this property speculation ‘was bound to end in tears’, says developer

A LOT of what passed for development over the last 10 years was gambling, reckless and speculation that was bound to end in tears, according to O’Callaghan Properties managing director Owen O’Callaghan.

Speaking at a Cork Chamber Business Breakfast, held in association with the Irish Examiner, Mr O’Callaghan said as a developer, he can say he is not too unhappy the property bubble has burst — even though at a human level it has a huge impact on people.

“Much of what has passed for developmentin the last 10 years or so, wasn’t developmentat all. It was gambling, it was reckless, it was speculation, and it was bound to end in tears.

“Speculators drove up the price of development land, both green field and brown field, sites in a competitive ego-driven madness. These people had only one interest, get rich quick. They had no interest in design, finished product or the employment element of the projects,” he said.

He asked those who lump all developers together a simple question: “Who develops the advance factories, the industrial parks, the advance office buildings, and the retail outlets that facilitate employment? There are some 14,000 people working in developments provided by our company, and there will be 6,000 more by 2012 when Liffey Valley is completed.”

He said if the objective of this era of condemnation and NAMA is to leave Ireland a Developer Free Zone — that can happen. Genuine developers who have been responsible for creating employment in this country will decamp elsewhere, he said.