Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

There is a huge overhang of property, including portfolios held by NAMA and properties being held as collateral for impaired loans across the banking system. The banks have been deleveraging rapidly, especially Ulster Bank. There is potentially an enormous amount of property on the market. Part of the Government's job is to clear the overhang first because there will be no property development in this city or country until that is cleared. It is surprising that the overhang is being cleared so fast.

The advantage of REITs is not only what the Deputy referred to. The big advantage of REITs is twofold. First, the small investor can go in, so one does not need to put up €200,000 or €250,000 to buy an apartment if one wants to invest in property. One can buy REIT shares and put in €1,000, €5,000 or €10,000 as a small investor. One is then in for the dividend.

Second, REITs is not exclusively in apartments, it is spread across a range of different properties. If there is a collapse in one area the REIT is at least protected by values in another area. It is something that is being done in all developed countries now, but it will not dominate the market. It is just another initiative and it is working so far.

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