A new study has shown that there is enough serviced land in the greater Dublin area to meet current rates of residential development for the next five years.

The report by estate agent Lisney says that, in recent years, developers have prioritised location over services.

Sales of sites in the south of the city were the most sought-after as demand was guaranteed.

The number of sites in these areas had dwindled in recent years and there had been increased interest in houses with large, expansive gardens in strong locations which came to the market.

"However, these properties will not be a guaranteed source of sites, as not that many will meet the developers and/or the planners criteria for development," stated the report.

"It will be interesting to see the direction the developers and the development land market takes when sites in traditional areas become even more scarce. It is inevitable that Dublin will see further development of lands opened up by infrastructural changes in the greater Dublin area."

The report, by researcher Aoife McGabhann, shows that there is a shortage of development sites in the Dublin area. The previously strong source of land - the religious orders - had now sold a considerable amount every year since the mid 1990s and, as a result, a larger number of sizeable land banks in or near the city had been exhausted.

Developers are aware of this shortage and some are trying to stockpile land, with or without planning permission, in order to reap the profits from the demand for both residential and commercial schemes.

Infill sites were now increasingly sought-after as they offered the developer an opportunity to build and sell in established areas, which had existing services and amenities, thus reducing costs at development stage.