The number of new property companies set-up during the first three months of the year has fallen by half, according to a survey released today.
Figures in the Bank of Ireland start-up barometer found that the number of estate agents and property services firms fell by 36 per cent due to construction slowdown. The number of new construction firms is down by 48 per cent.
Overall the number of new businesses formed during the first quarter of this year was down 20 per cent at 4,109, when compared with the same period last year.
Dr Dan McLaughlin, chief economist, Bank of Ireland said the survey suggests that to new entrepreneurs are starting to shift from construction to other areas.
The barometer suggests that entrepreneurial activity is moving away from traditional sectors towards service-based businesses.
The number of new accounting, bookkeeping and auditing companies formed increased by 10 per cent to 56 in the quarter.
The survey notes that a recent Irish Export Association report found that services exports grew by 18 per cent last year and now account for 42 per cent of total exports.
A further 47 new businesses relating to human health activities have also been established.
A geographical shift to business formation outside the capital is also suggested by the survey, which found that the commuter counties showed the fastest rates of new business formation.
While the number of new businesses in Dublin fell by 6 per cent to 1,690 new businesses, Co Louth saw a 17 per cent increase, to 70, while Co Wicklow saw a 5 per cent increase to 67.