Instead of investing in residential property where returns are showing signs of easing, or in the office or retail sectors of the commercial market, more investors are considering potentially higher-yielding income-producing assets.

It is expected that the next generation of property investors will invest in nontraditional sectors including student housing, retirement homes and villages, remediation sites, medical facilities and hospitals, leisure facilities, prisons, self-storage facilities and infrastructure. The rationale for investing in these alternative sectors must be carefully considered in all instances.

Student housing When one considers the quantum of suitable student accommodation available in particular cities and towns the rationale for investing in a sector with income-generation potential is significant.

This is particularly true in locations where properties can also be let outside of the college term.

This sector is hugely popular in the UK at present, with some specialist funds emerging.

In an Irish context, asset selection will need to be very selective on the basis that a large quantum of Section 50 student accommodation has been developed in recent years with many locations now over-supplied.

Retirement facilities This sector is primarily driven by demographics. In Europe, there is huge demand for facilities to accommodate an ageing population.

Ireland is no exception, with strong demand for retirement homes and assisted living accommodation.

There will be opportunities to develop niche businesses in the sector, where returns can be very attractive.

Remediation sites Some investors will consider the merits of purchasing sites or properties which are either abandoned or underutilised and whose highest or best use is undermined by environmental contamination.

Investors will purchase such properties at attractive prices in order to make significant gains when the property is subsequently sold following remediation.

Medical facilities and hospitals This sector is one that has already seen considerable private investment on the basis that public facilities in the Irish market are inadequate and there is an unprecedented demand for private medical facilities.

Investor appetite for private hospitals will be enhanced by the availability of tax incentives in Ireland for the foreseeable future.

Leisure The leisure sector across Europe offers significant investment opportunities over the next couple of years.

Investments in golf courses, cinemas, bowling alleys, ski slopes, ice-skating rinks and other entertainment facilities will increase.

Careful examination of local demographic data and consumer spending patterns will be required to justify such investments.

Self-storage facilities The self-storage concept is one that is gathering pace across Europe and looks certain to become more popular in Ireland.

The demand for self-storage is a function of both commercial and household activity and is expected to increase in the coming years.

Infrastructure There is great scope for private investment in public infrastructure.

Many Irish investors would welcome an opportunity to invest in the provision of airports, roads and bridges on the basis that such investment would offer long-term income streams with decent returns.

Marie Hunt is director or research at CB Richard Ellis