The current economic crisis in Ireland
is having a knock-on effect on the country's property market, with analysts describing it as the "most vulnerable in the world".
Despite many other European markets entering their recovery phases in the wake of the global financial disaster, Ireland's real estate sector is still in turmoil, with prices having fallen by 44 per cent in Dublin since their peak. And analysts have predicted that the worst is not over just yet.
Credit rating agency Standard and Poor's predicted in June that house prices in Ireland would fall by another ten per cent a year before reaching the bottom in 2011. Elsewhere, Knight Frank's Global House Price Index showed that Ireland's ongoing economic turmoil is still reflected in the housing market and prices in the three months ending September 2010 fell by a further 1.3 per cent.
"Irish property is being watched closely by investors keen to identify opportunities before the market turns. It seems unlikely however that this opportunistic investment will really take off until the second half of 2011 rather than the first half," Liam Bailey, head of research at Knight Frank, explained.
- Tuesday 30 November 2010