Auctioneers Sherry FitzGerald saw pre-tax profits for 2001 fall to €1.5 million from €6.12 million in what the group described as a "challenging year".
The group blamed the combination of the economic downturn and the after effects of the third Bacon report for the deterioration in profits. Turnover also fell from €27 million in 2000 to €21 million in 2001.
But the group said it is now seeing signs of recovery in the property market due to measures introduced in the budget and rising confidence.
It said the trend of falling house prices in 2001 has been reversed and early indications suggest that secondhand Dublin house prices have risen by close to 6 per cent in the first quarter and nationally by 5.5 per cent.
Sherry Fitzgerlad chief executive Mr Mark FitzGerald said: "Activity levels in the residential market for the first quarter have been strong reflecting the fact that people are now making up for lost time, by making decisions in the early part of 2002 that in the normal course of events they would have made in the second half of 2001".
The company said it anticipated the slower global economy will continue to affect demand for certain types of commercial property but the residential market should continue to enjoy an uplift in activity following the budget.
The company does not propose the payment of a final dividend. The total for the year is 1 cent versus 4 cent last year.