Ireland picked as 'worst' property market

Another year of price declines earned Ireland the title of worst property market in the world from UK investment firm Colordarcy.

"It seems that 'the luck of the Irish' has finally deserted them," the company said in a report on the five worst markets.

Prices in Ireland are down 60 per cent from the peak, after a 15 per cent fall in 2011, the firm notes.

The second worst market was Cyprus, where "even the biggest advocates are losing interest," the firm said.
 
Cyprus' "stagnant economy and its vulnerability to the Greek crisis with two of its largest banks exposed to a total of 5 billion euros doesn't bode well," according to the investment firm

Greece was placed third, due to its debt crisis, followed by Bulgaria, which was once regarded as the "new Spain" for overseas investors.

"Property prices are in freefall [in Bulgaria] and with the exit of British and Irish buyers, Russian investors now dominate the market and their strong bargaining skills result in continued falling prices," Colordarcy said..

The fifth worst market was the Czech Republic, another formerly popular investor market.

"A combination of high prices, oversupply and some of the lowest rental yields in Europe have made this [Czech Republic] a property investor's bohemian nightmare," the report concluded.

Financial uncertainty will continue to make most Eurozone property markets a risky venture for investors
"Bulgaria, Ireland and Cyprus should provide a warning for those who don't consider the underlying fundamentals of a property market before investing," said Loxley McKenzie, managing director of Colordarcy.