Spending on property falls 17% to €45bn

IRISH property spending is expected to hit its second highest level ever at just over €45 billion this year despite sales plummeting by 17% from last year.

This is according to the latest Savills Hamilton Osborne King property outlook which found that office take-up is expected to reach a record high this year.

It also found that land values are up 25% this year.

The reason spending on Irish property decreased by 17% this year is because last year was a phenomenal year, according to the outlook.

Head of research at Savills Hamilton Osbourne King, Joan Henry said: “The problem is this fact has been clouded by uncertainty in recent months as economic growth slows and also as a result of what could be described as an external shock to the system, via the liquidity tightening that kick started in August.”

The survey also revealed that there has been an increase in investor spend going overseas, with an estimated 22% of the €45bn total spend going overseas this year, compared to 15% last year.

However, total spend on new homes is expected to fall from €29bn to €23bn this year.