First quarter property returns in Ireland slumped to their lowest since records began 13 years ago.
Returns fell to -2.3%, according to the SCS/IPD Irish Quarterly Index. The result brings an end to 23 consecutive quarters of positive performance. This dragged the 12 month total return to 4.9% - the lowest annual return since 2003.
IPD Research manager, Angela Sheahan said: ‘The outward movement in yields in quarter one reflects a pricing correction which needed to happen because property yields had been pushed so low over the previous five years. The situation is aggravated by the lack of available debt and uncertainty in the global financial markets.’
The results were announced today. They follow an announcement by CB Richard Ellis, this morning, stating that declining sentiment towards property and the downturn in economic conditions had led to a 20% decrease in land values in Ireland.