Tuesday, 25 June 2019

Questions (151)

Michael McGrath

Question:

151. Deputy Michael McGrath asked the Minister for Finance if the Central Bank will follow up on its financial stability note, entitled "Who invests in the Irish commercial real estate market?", in order to analyse investment in the residential real estate market here; and if he will make a statement on the matter. [26794/19]

View answer

Written answers (Question to Finance)

I would draw to the Deputy's attention that the analysis published in the Central Bank's Financial Stability Note “Who invests in the Irish commercial real estate market?: An overview of non-bank institutional ownership of Irish CRE” includes available data on Irish-resident institutional investor holdings of residential real estate, as well as commercial real estate. The definition of commercial real estate (CRE) used in the Central Bank's Financial Stability Note aligns as closely as possible to cover “income-producing” real estate holdings. In this way, traditional CRE sectors such as office, retail and industrial/logistics are covered, but so too is the institutionally owned private rental sector.

A forthcoming Financial Stability Note by the Central Bank will also analyse the investment in credit assets collateralised by Irish real estate.

This work constitutes part of the ongoing monitoring by the Central Bank of developments in the real estate market of relevance to financial stability, which the Central Bank comments on regularly in publications, including in its bi-annual financial stability review.