Reports predicts property growth
Property prices could rise by between 7 and 10 per cent during 2010, a new report has claimed
An annual list of unusual investment opportunities by Bloxham Stockbrokers claims both commercial and residential property will bottom out in spring or summer before showing modest recovery.
Managing partner of the firm, Pramit Ghose, said the recovery will be fuelled by pent-up demand, attractive yields, renewed international demand and improving mortgage availability.
"Both markets end 2010 with a positive 7 per cent to 10 per cent return, and positive momentum into 2011," he said.
House prices have fallen 12.7 per cent in first 10 months of 2009, the Permanent TSB/ESRI house price index showed last month. The Irish Home Builders’ Association (IHBA) Property Market Review and Outlook 2009, published in November, said the price of new homes across the country has already been reduced by over 40 per cent on average.
House prices peaked in March 2007, and have since fallen by more than 26 per cent.
There were further prediction for the banking sector. Mr Ghose said the share prices of AIB and Bank of Ireland would rise above €3 again, from their current level of under €1.75. Shareholders would welcome the recapitalisation plans, he said, allowing both banks to avoid nationalisation.
Looking overseas, he said China would raise interest rates to slow an overheating economy.
The report also predicts the dollar will continue to strengthen against the euro, hitting $1.30, while gold will fall to $900-$950 an ounce from its current level of $1,130.