Irish Times End of Year Round Up
Nicholas Corson, Director, Finnegan Menton
Has the commercial property market bottomed out yet?
It's hard to call the bottom of any market but we must be close to it. I don't think we are close to recovery yet and I don't anticipate a strong bounce but, when sentiment changes, markets move, particularly in the investment market.
What will be the peak-to-trough percentage decline in capital values in this downturn?
Values will be down 50 per cent or worse and that fall has already taken place. Development land will show significantly higher declines in values.
Which segment of the market has been hit hardest and which will be the first to recover?
Development land has been hit the hardest. Prime investments will be the first to recover particularly where they are of sufficient quality and size to attract overseas buyers.
Do you think Nama will get bank lending moving again?
Yes, but gradually. Nama will hopefully stabilise matters and enable the economy and banking gradually to get back to business.
What changes do you expect to see in the commercial property market in 2010?
Little change in the first half of 2010 but some deals to be seen in all sectors. The stand-off in the capital markets won't last forever and there will be occupiers, particularly in the office market, taking advantage of the value to be had.
© 2009 The Irish Times
