Managing Director Druker Fanning

It would be difficult to predict anything other than continued demand and growth in all sectors. Severe planning delays, infrastructural problems and labour shortages in the construction industry will result in limited supply and increased costs.

Real Estate is becoming a very expensive commodity and the single private investor is sadly being pushed out of the market by private partnerships, institutional and plc buyers. Some of the lot sizes are now of so large that institutions are forming partnerships to acquire investments that satisfy their lot-size criteria. This will allow rationalisation and rebalancing of portfolios, thus offering stock to the starved marketplace.

Worries about the Euro, oil prices and wage inflation, which should have an impact on values, do not seem to affect some of the strong prices being obtained for property and land. Even the old established maxim "location, location, location" is being disregarded, judging by the demand for offices in out-of-town locations. On that basis alone, real estate must be a sound bet if properly chosen and financed.