Irish commercial-property values dropped 37.2 per cent last year, the most in at least two decades, as curtailed bank lending caused investment demand to collapse.
Values for offices, shops and warehouses fell 17.7 per cent in the fourth quarter from the previous three months, London-based researcher Investment Property Databank said on its website today.
After rental income is included, the slide in building values meant Irish commercial-property investment lost 34.2 per cent last year.
Banks across the globe have reduced lending to rebuild balance sheets battered by $1.06 trillion in losses and writedowns.
Ireland's economy was the first in the euro region to enter a recession, snapping a decade-long boom powered by exports and housing-market gains.
The record quarterly decline in values "is another reminder of the extent to which the Irish market was over-priced prior to last summer," said Angela Sheehan, IPD's head of indices, in the release.
IPD calculates its quarterly Irish index from the performance of 325 commercial properties worth €3.7 billion ($4.7 billion). Total-return calculations exclude debt and taxes.
Bloomberg