Ireland's property crash one of the most expensive - Central Bank research

Wednesday 03 October 2012 23.42
House prices won't return to 2007 levels for another 7 to 18 years
House prices won't return to 2007 levels for another 7 to 18 years

It could take between seven and 18 years for Irish property prices to fully recover, according to economists at the Central Bank.

They also said it may be another two or three years before economic growth returns to 2007 peak levels.

The economists at the Central Bank had looked at crashes in three Nordic countries and Japan to estimate how much longer the Irish crisis will continue.

Their research found that Ireland's banking crisis is the most expensive of 147 crashes they examined.

They said that from the point at which property prices began to fall it could take between 11 and 22 years for them to recover.

The economists also said that unemployment will remain elevated for some time.

They also concluded it could take four to five years for banks to return to profit.