14
October
2013
|
00:00
Europe/Dublin

CBRE Reaction To Budget 2014

Dublin, 15th October 2013 – Commercial property consultants CBRE this afternoon reacted favourably to Budget 2014 welcoming a Budget which they describe as pro-business and pro-jobs. According to Marie Hunt, Head of Research at CBRE, “There were several measures introduced in today’s Budget which will help stimulate job creation in the Irish economy that will in turn benefit the construction and property sectors which are already showing some signs of improvement”.

CBRE particularly welcomed the retention of the 9 per cent rate of VAT for the hotel and tourism sector and the removal of air travel tax, which they say is critical to sustaining the momentum witnessed in this sector of the economy over the last 12 months in particular. The property consultants also welcomed the Government's commitment to retain Ireland’s 12.5 per cent corporate tax rate, which they say is critical to inward investment and job creation, which in turn drives demand for office and industrial accommodation throughout the country. CBRE also welcomed the extension for a further 12 months of the capital gains tax (CGT) waiver first introduced two years ago for purchasers of residential and commercial property who retain these properties for a period of 7 years. CBRE say that this will alleviate pressure that had been building over recent months to have transactions completed by the deadline of 31st December 2013 and will ensure a steady flow of transactional activity into 2014.

The property consultants welcomed the decision to extend the Living City Initiative to the cities of Cork, Galway, Kilkenny and Dublin. However, CBRE say that the Government missed an opportunity today to introduce an incentive package such as the Business Premises Renovation Allowance (BPRA) which operates successfully in the UK to encourage the redevelopment and refurbishment of secondary office accommodation – a measure which they say would help alleviate the shortages of prime office accommodation in core locations, which organisations such as the IDA have been alluding to for some time now.

Summary of Key Measures from Budget 2014

  • Basic rate of social welfare stays the same, as does child benefit
  • Maternity benefits standardised at €230 per wk
  • Telephone allowance in the household benefit package to be discontinued from Jan 1st
  • Income threshold for medical cards for over-70s lowered
  • Free GP care for children aged five and under confirmed
  • Reduced rate of €100 extended to new entrants under 25 to jobseekers scheme
  • €30m to be allocated to the State’s house building programme which will deliver 500 houses, including new builds and the upgrade of previously uninhabitable units
  • Further €10m to be allocated for unfinished estates
  • €10m allocated to resolve problems at Priory Hall
  • €200m from lotto license will be invested in local economic activity and job creation
  • Home heating oil and petrol/diesel unchanged
  • VAT rates are staying at 9%, 13.5% and 23% in 2014
  • No increase in income tax, USC in 2014
  • DIRT rises to 41%
  • Beer and spirits hit by 10 cent rise, wine up 50 cent
  • Alcohol, tobacco excise duty rise
    Medical insurance tax relief capped at €1000 for adult, €500 for a child
  • Start Your Own Business scheme aimed at those unemployed for 15 mths includes 2 year exemption from income tax
  • 100% committed to 12.5% corporate tax rate
  • Living city initiative extended to Cork, Galway, Kilkenny and Dublin, for all buildings built prior to 1915
  • Home renovation tax incentive scheme gives tax credit to homeowners carrying out works on their homes in 2014 and 2015
  • Air travel tax to be reduced to zero from April 2014
  • VAT rate for tourism sector to remain at 9%
  • Telephone allowance for pensioners to be scrapped
  • Rise in prescription charges from €1.50 to €2.50

ends

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.

In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 110 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie./ni

CONTACT: Marie Hunt – 00 353 1 6185543 / 00 353 87 2727115 or e-mail:marie.hunt@cbre.com