Where will product for private investors come from in the year 2000? In the last few years, we have misjudged the potential availability of investments, with a doubt expressed as to where product will come from. Yet, each year turnover appears to grow despite increasing values. In 1998, private investors out-bid institutions and bought about 60 per cent of all property sold, but the institutions reversed the position in 1999 to purchase over 60 per cent of all property.

A number of transactions occurred as a result of re-structuring of portfolios by institutions, with the release of a certain property sector, and re-investment in another. An example of this was the sale by an institution of several retail units at The Square in Tallaght, which were acquired by private investors, with the institution reinvesting in office/industrial sectors. This is likely to re-occur this year, but, the question will be asked where else will the product come from?

As a result of phenomenal job creation in the last few years and the large number of new companies coming into Ireland, such as Hewlett Packard, Intel, IBM as well as all the IFSC companies, there has been huge office and industrial space requirements. As a result, there has been a tremendous movement to new areas and "Dublin" has stretched into Wicklow, Kildare, Meath and surrounding counties, yet the concentration of investment appears to be largely in the original core areas of Dublin, Cork and the larger cities.

Private investors would do well to invest in the booming population growth areas before capital values accelerate. There are a number of developments which have just commenced in these areas, which will produce product either through forward funding or when let.

IN recent years, a number of investors have pooled their resources to try to obtain a better yield, better covenant and better property. This evolved firstly through the purchase of designated property. It has now developed into normal property investments and can be a very attractive way of investing in property in that the options are far greater once the lot size is bigger.

Because of increasing property values, it has been difficult for the smaller investor to obtain product and this has been a successful way of sourcing a better property.

There are also a number of older investors who are sitting on significant gains in their portfolios and may decide to sell, especially since the 20 per cent rate for Capital Gains Tax remains in situ. There will also be simple profit taking by investors wishing to liquidate.

People with existing portfolios may be able to swap properties and this has led to some transactions in recent years and is likely to continue. People are sometimes loathe to take a cash gain, without an alternative available investment, as to take same and remain in cash can be folly especially with current low interest rates.

Traditionally, the Irish have invested more than their European counterparts around Europe and in the UK, primarily because of the small size of our domestic economy.

The introduction of the euro has further lifted perceived border restrictions and the Irish are in force purchasing property across the UK and Europe. There should be tremendous scope for much greater diversification across the euro zone in the next number of years. This will open greater avenues for private investors.

WE are in an unprecedented era of private wealth in Ireland. One has only to pick up the paper on a regular basis to discover that another Irish multi-millionaire has been created. Investors with cash have and will find property to invest in and demand will continue to grow as a greater spread and mix is required within financial asset portfolios.

Ann Hargaden is a director of Lisney estate agents.