Property

AIB chief warns €50bn decline in commercial property sector likely to continue

Colin Hunt says bank is ‘cautious’ but ‘not worried’ by downturn because it has been conservative since re-entering the market

Colin Hunt, chief executive of AIB, says there has been a ‘marked slowdown’ in activity in the sector this year. Picture: Fergal Phillips

The downturn in Ireland’s €50 billion commercial property market will continue in the coming months, the chief executive of country’s largest bank has warned.

Colin Hunt, the head of AIB, said there’s been a “marked slowdown” in activity in the sector so far this year, and warned that underlying asset prices will continue to fall.

The news comes after the lender booked a €91 million impairment charge for the first half of the year in ...