Dáil Éireann Debate, Thursday - 22 January 2026
316. Deputy Pearse Doherty asked the Tánaiste and Minister for Finance the progress of all property funds reaching a target of 60% leverage limit on the ratio of property funds’ total debt to their total assets and 60% will be reached by the five year time limit; the current level of leverage in Irish property funds; the leverage level of the top 10% of most leveraged funds; and if he will make a statement on the matter. [5183/26]
View answerI am advised by the Central Bank of Ireland that the phased implementation of the macroprudential measures for Irish property funds, which were announced in November 2022, continues to be monitored.
As outlined in the latest Central Bank Financial Stability Review 2025:II, Irish property funds continue to make progress towards meeting the 60 per cent leverage limit by the end of the implementation period in November 2027.
Average leverage in the sector has decreased by 1.5 percentage points from approximately 48 per cent to 46.3 per cent, from end-2023 to end-2024. Data for end-2025 is not yet available.
The average decline across the sector also reflects actions among higher leveraged funds, i.e. those with leverage greater than 60 per cent to reduce leverage. This aggregate decrease reflects funds actions to reduce leverage through a combination of asset disposals, reductions of non-equity liabilities and new equity inflows.
Additionally, while improving valuations in some commercial property sectors may help funds adjust their leverage towards the limit, further leverage reduction is needed for some funds. In this respect, the Central Bank continues to engage with fund managers, requiring Irish property funds that are above or close to the leverage limit to submit plans on how they actively intend to reduce of maintain leverage below 60 per cent.
The Central Bank expects that funds continue to set out and implement actions over the remainder of the implementation period to ensure leverage is reduced in a gradual and orderly manner to comply with the limit in November 2027.
