Commercial property crash a risk to economy, Central Bank warns

A new Central Bank report has shed light on the authority’s regulatory priorities and the economy’s main risks over the next 12 months

Commercial units have dropped in value by 20 per cent since the pandemic. Picture: Getty

The Central Bank of Ireland (CBI) has identified “structural changes” in the retail and office markets, driven by shifting work and shopping patterns, as a key risk for Ireland’s economy over the next 12 months.

“Downside risks are most immediately visible in the commercial real estate market,” a new report stated, noting the 20 per cent fall in the value of properties in this sector since the pandemic.