Commercial Property

Ireland is still in Major denial about the prices of its commercial property sector. At the moment its sitting on a tipping point and many stand on the knife point blissfully unaware.

This month i’ve been Jaw droppingly shocked at the lack of foresight of people / professionals in the business of commercial property. One actually told me “It’s awful times, I’m basing the price on the mortgage (they took out to buy the unit in 2007), that and my small mark up so i’ve no room to negotiate on price.” The person owns property in an estate that has remained 95% unoccupied for the last 12 months and had been fortunate to have a tenant who is now moving out. Supply in the area has doubled in those 12 months. I know it may not sound like it but these are smart people – they just haven’t seen that supply does not always meet demand at the equilibrium point of their mortgage repayments.

Galway Babe Shared this vid on Boards.ie about actually how much commercial property is sitting in Galway used and with no potential for demand to increase.

The more i research the issue the more 2009 looks to eclipse 2008 for its economic recessionary readjustment. The best advice one can hope to offer is that Market Rates take no consideration of the cost to get things to market in recessions.

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