Central Bank steps up concerns over outsized role of property funds in Irish commercial market

There are 200 property funds, which include US, European, and Irish investors, that account for €23bn, or 40% of the stock of commercial property investments in Ireland

The Central Bank has launched a consultation about its proposals through the early months of next year. File picture: Hollie Adams/Bloomberg

The Central Bank has made minor changes to the way banks lend to the residential mortgage market but has stepped up its concerns about the potentially outsized role property funds are playing in the Irish commercial property market.

In its latest review of the risks and resilience of the Irish financial system and economy, the Central Bank has proposed measures to limit the amount of leverage or borrowings that property funds can pump into Irish commercial buildings to safeguard against any potential shock from the sector reverberating into the wider economy.