Investment in Irish property is expected to hit its second highest level ever this year, according to Savills Hamilton Osborne King (acquired by Savills last year).

The company predicts that €45bn (£32bn) will be spent on both residential and commercial property by the end of 2007. Savills Hamilton Osborne King says that while that represents a 17% reduction on last years record high, it is still a relatively strong performance.

The slowdown in the industry is quite noticeable in the new homes area, which seems set to fall from €29bn (£20bn) in 2006 to €23bn (£16bn) this year. However, it is anticipated that it will be a record year for the office sector, with take-up likely to exceed 250,000 sqm.

The uncertainty in the Irish market has led to an increase in overseas investment, with 22% of this years total spend going abroad compared to 15% of last years total.

Despite the slowdown in growth, Angus Potterton, managing director of Hamilton Osborne King, remains upbeat about the sectors prospects.

“While there have been plenty of predictions regarding the demise of the property market, the reality is that its not all doom and gloom. We look forward to a busy 2008 and forecast a steady year ahead for most sectors”, he said.