Irish property values down by 80 percent from 2006 peak

October 21, 2009 by Infowars Ireland

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

www.irishcentral.com

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. Read full article…