The laggards on the EMU periphery still have a long way to go. Prices are expected to fall another 13pc in Italy and Portugal, 15pc in Spain and Greece – and 20pc in Ireland, on top of the 50pc falls already seen.
“The consequences of the [Irish] property boom may not have fully played out yet. Overall vacancy rates remain high,” it said. The gloomy view on Ireland is at odds with growing optimism in the City that the Celtic Tiger has pulled off an “internal devaluation” and will soon be back on its feet.