Today’s latest decision by the European Central Bank (ECB) to cut its benchmark interest rate by a further 25 basis points to 1% was received positively by property consultants CB Richard Ellis, Ireland although they point out that rate cuts alone will not solve the property downturn that is currently being experienced.

According to Guy Hollis, Managing Director of CB Richard Ellis, Ireland, this most recent rate cut is another step in the right direction for the property investment sector which has been relatively stagnant for the last 18 months. “With property yields having moved sharply upwards since mid-2008 and the cost of money continuing its fall from historic peaks, as time goes on it’s becoming obvious that commercial property is becoming an increasingly attractive investment for those who can obtain funding to complete a transaction in this climate. While a quick return to transactional levels of the recent past is unlikely, it’s encouraging that when liquidity returns to the system commercial property will likely be an out-performing asset class based on these yields and falling interest rates. Without bank funding to support purchasing decisions however, rate cuts although welcome will do little to stimulate buying activity. ”

CB Richard Ellis say that following several months of virtually no transactional activity in the Irish investment market, there is now some engagement between buyers and sellers considering the very significant price adjustments that have occurred. According to Marie Hunt, Director of Research at CB Richard Ellis “Albeit in the absense of real evidence, we are now beginning to see some levelling off in yield movements following sharp corrections since mid-year 2008. We believe that most of the value correction in this cycle has already taken place and weakening rental prospects in the occupier markets have to a large extent already been factored in. However, while there are tentative signs of stability emerging, transactional activity and confidence remains weak and it is likely to be the second half of 2009 before this situation improves, regardless of the underlying interest rate environment” .

For Further Information please contact

Guy Hollis
Managing Director
CB Richard Ellis
Tel 00 353 1 6185560

Marie Hunt
CB Richard Ellis
Tel 00 353 1 6185543

About CB Richard Ellis
CB Richard Ellis 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 firm (in terms of 2008 revenue). The Company has more than 30,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis 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. CB Richard Ellis has been named a BusinessWeek 50 “best in class” company three years in a row and a Fortune 100 fastest growing company two years in a row. Please visit our website at www.cbre.com.

In Ireland, CB Richard Ellis 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, project management, consultancy, valuations and research. CB Richard Ellis Ireland has been listed among the top 50 Best Workplaces in Ireland, 2009, for the fifth year running. Please visit our website at www.cbre.ie