Following a record number of investment property transactions in 2013, property consultants Savills Ireland has said that the value of turnover in the market could exceed €3bn this year.

In their latest market outlook, Savills note that 140 investment property sales worth almost €2bn took place in 2013 – the highest level since 2006.

Economist and Director of Research at Savills Ireland Dr John McCartney says there is now a growing sense that Ireland's economy is on a sustainable recovery path which, in turn, is underpinning the demand for investment properties.

He said: "Our successful exit from the EU/IMF assistance programme, and the significant progress that has been made in bringing the fiscal deficit under control, has improved the external perception of Ireland as a location for investment.

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"This renewed confidence appears to be justified by the main macro-economic aggregates. GNP – the most representative barometer of activity in the Irish economy – expanded by 3.9% year-on-year in Q3 2013."

McCartney also added that rising employment has increased the attractiveness of office investments.

"In net terms, 60,900 new jobs were added in the economy last year – an increase of 3.3%, which is remarkable by international standards. This is feeding through to stronger demand in occupational markets.

"The numbers employed in in professional services, ICT and administration has increased significantly since 2010 and this is driving strong net absorption in the Dublin office market. Consequently the vacancy rate for Grade A offices in the traditional Central Business District is now just 4.1%."

According to Domhnaill O'Sullivan, Director of Investments at Savills Ireland, the value of investment transactions this year could exceed €3bn, surpassing previous records. However, he said that this would be subject to a number of factors including the availability of stock.

"2013 exceeded all expectations in relation to investment volumes. At this point in 2014 there are approximately €750m of transactions agreed or in legals, and an estimated pipeline of around €600m coming to the market in the short-term.

"A significant volume of stock is still waiting to be traded and if any of the banks currently holding large volumes of stock decide to de-leverage via large portfolio sales, we could see turnover reach record levels by the end of the year."

(CD/JP)