Development land prices ‘back to late 1990s’ levels

A new report has shown up to a 90% decrease in development land values in Ireland.

The report from property consultants Savills Ireland said that while most of the drop in land values was evidenced quickly between 2008 and 2010 with values falling between 75-90%, a lack of activity has pushed even prime values back closer to minus 90%.

Stagnant commercial and residential development markets coupled with lack of funding are the main factors for the drop in values, the company said.

"Lack of activity in the development land market, particularly in the last 12 months, has compounded the rapid loss in values that took place between 2008-2010,” said Joan Henry, head of research at Savills Ireland.

"Values for prime sites are now back to those last transacted in the late 1990s.”