RSS
News


Home Page > News > Irish property values down by 80 percent from 2006 peak

Blogs


comment on article Make a comment
print this article Print
email this articleE-mail

Irish property values down by 80 percent from 2006 peak

Chickens coming home to roost in Ireland as banks seek repayments on boom loans

By
KELLY FINCHAM,
IrishCentral.com Editor

Published Wednesday, October 21, 2009, 7:55 AM
Updated Wednesday, October 21, 2009, 8:16 AM

 

Bookmark and Share

Commercial catastrophe: High Court judge says business property values are off by some 80 percent from the 2006 boom
Commercial catastrophe: High Court judge says business property values are off by some 80 percent from the 2006 boom

It looks as if the chickens are coming home to roost in overvalued properties all over Ireland.

An Irish judge has revealed that property values in Ireland have plunged by 80 percent in some areas.

Justice Peter Kelly says commercial property has taken a major hit in Ireland with many properties falling by 70 to 80 per cent.

He said he is dealing with such cases on “a daily basis.”

Kelly, who manages the so-called big-business section of the High Court, spoke out Monday after examining a list involving some 70 business properties.

Many of the cases involve the failure to repay loans made at the dizzying heights of the property boom.

In layman's terms, it means that people were able to borrow ridiculous amounts of money based on the alleged value of another property they owned.

One case in Kelly's court involves the Irish building society, the EBS, seeking repayment of a €19.5 million loan made in June 2007 which had been borrowed against land valued at €6 million in Kilcock, Co Kildare.

Kelly made his comments Monday while dealing with an application to the  court from ACCBAnk which wanted to take action against five men from Cork and Kerry.

The bank is looking for some  €5.5 million over alleged unpaid loans made in 2005 to a group operating as Westhatch Ltd, Woodford Bar, Paul Street, Cork.

The judge said it appeared as if property values had dropped 70-80 per cent.

“I see that every day of the week here,” he said.

print this article Print
email this articleE-mail


Be the first to make a comment.

It may take several minutes for your comment to appear.


Click to learn more from DiscoverIreland.com.
IrishCentral Mobile QR code


Connect to IrishCentral with your Facebook account

or sign-in directly

Welcome to IrishCentral!
Please provide the following information in order to create your account

Username:
E-Mail Address:
Password:
Confirm Password:
I agree to the Terms of Use and Privacy Policy


Welcome to IrishCentral!
All we need is the following information and you will be part of the #1 Irish community in the US

E-Mail Address:
First select a unique username:
Username:
Now choose a password:
Password:
Confirm Password:
I agree to the Terms of Use and Privacy Policy
Thank you!

Just one more step and you will be part of the largest Irish community in America! Tell us a little more about you to start enjoying all the features of IrishCentral.

Additional Information:

First Name:
Last Name:
Date of Birth:
Zip:
Gender: Male  Female 
Country:
Degree of Irishness:
Household Income:
Level of Education:

Subscribe to our newsletters:

The Best of IrishCentral - Daily Newsletter
Special Offers from our sponsors

or
Skip

You can edit your information at any time, just go to "my account" when you're logged in.

Log into IrishCentral with your Facebook account

or sign-in directly

E-Mail:
Password:
 Remember me Forgot my password