PACE OF DECLINE IN PROPERTY RETURNS EASING
Property consultants CB Richard Ellis today welcomed the publication of the most recent index of commercial property returns for the Irish market, produced by the Investment Property Databank in conjunction with the Society of Chartered Surveyors. The index indicates that while property returns in Ireland continued to decline in Q4 2009, the pace of decline has eased considerably in recent months as prime yields begin to stabilise. The latest IPD figures confirm that while total returns for Irish commercial property for the 12 month period to December 2009 were down by an average of 23.3% (-25.4 for retail properties; -22.1% for office properties and -20.4% for industrial properties) the pace of decline eased considerably in the last quarter with total returns down 2.9% in the final quarter compared to more significant value declines in earlier quarters.
According to Marie Hunt, Director of Research at CB Richard Ellis, “While commercial property returns are still in negative territory in the Irish market, the fact that the pace of decline is easing quarter-on-quarter is very encouraging, suggesting that we are through the worst of the downturn and that values are now showing signs of stabilising. The UK property market has now experienced six consecutive months of positive property market returns and while the Irish market is lagging this recovery, it is encouraging that we now appear to be seeing the first signs of stabilisation emerging”.
Director – Research Department
CB Richard Ellis
Tel 00353 1 6185543
CB Richard Ellis
Tel 00 353 1 6185500
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 approximately 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 Web site at www.cbre.com. In Ireland, CB Richard Ellis is the country’s largest commercial real estate services company, now employing over 100 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