NAMA: Budget measures will improve international investment

The Chief Executive of the National Asset Management Agency (NAMA), Brendan McDonagh, has welcomed measures dealing with the property market announced as part of the Budget for 2012.

The Chief Executive of the National Asset Management Agency (NAMA), Brendan McDonagh, has welcomed the Finance Minister Michael Noonan's Budget measures dealing with the property market.

The Justice Minister Alan Shatter was unable to draft a law to scrap upward only rent reviews.

Mr Shatter said “with considerable regret” the Government had abandoned plans to implement to deliver this law to assist commercial tenants.

The decision was immediately branded a “betrayal” of commitments made by Fine Gael and the Labour Party to retailers before the General Election.

However, Mr McDonagh has welcomed the greater certainty that measures dealing with upward-only rent reviews would bring.

NAMA had been dead against the Government move as it believed it would drive commercial property values down by a further 20%.

Mr McDonagh said: "The Budget contains a number of measures which will give greater certainty and greater support to Irish and international investors considering investing in Irish property."

He also welcomed the reduction in stamp duty on commercial property from 6% to 2% and the exemption from Capital Gains Tax for any property purchased up to end 2013, if held for seven years.

“Mr McDonagh said: "Lack of certainty on this issue was a major concern among investors. This has now been resolved as a result of the Budget statement and investors can now make investment decisions with greater confidence."