CBRE Welcome Construction 2020 Stimulus Plan But Urge Government To Focus On Supply Side Issues

To listen to the RTE Radio One Drivetime interview with Marie Hunt, discussing the Government's Construction 2020 announcement click here

Dublin, 14th May 2014 – Commercial property consultants CBRE Ireland today welcomed the launch of the Government’s Construction 2020 report but warned Government that not all of the measures announced today will have the effect of alleviating the shortage of housing supply which they say is the most significant driver of double digit house price inflation in the Dublin market at present.

According to Marie Hunt, Executive Director and Head of Research at CBRE Ireland, “For some time now, even though supply shortages have been increasingly obvious and we have a ready supply of construction workers, developers have been unable to commence much-needed construction due to the financial constraints of development. Many of the measures introduced today will hopefully go some way towards alleviating these pressures and will in some cases render development feasible once again. The implementation of many of the Construction 2020 measures along with the release of more land for development should in time lead to an increase in housing supply, particularly in the Dublin market where the problem is most acute. However, we have huge reservations about the proposed site value tax which could very well have the opposite effect of the one intended. We are also concerned about plans to boost access to mortgage funding for first time buyers which will boost demand as opposed to supply”.

CONTACT: Marie Hunt – 00 353 (0)1 618 5543 / 00 353 87 2727115 or e-mail:marie.hunt@cbre.com

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 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 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.eu

In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 130 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