And a recent report from Davy Stockbrokers reveals that construction's share of employment in the Irish economy has soared over the last decade, with building now accounting for 22% of GNP and 12% of employment in the economy. But the same report shows that 40% of all homes built in the last two years are lying vacant as second homes, holiday homes or unlet investment properties.

"There's been a big rise in wealth in Ireland, and holiday homes have become a significant way to spend that wealth, " says Austin Hughes, chief economist with IIB Bank. "Holiday homes are a function of the leisure society in which we live. People don't spend their weekends washing clothes anymore, they want to enjoy themselves."

And as with the buy-to-let market, many holiday homes are bought with the expectation that property prices will continue to rise, with buyers often seeing them as a longterm investment or home to retire to.

"Very often people buy a holiday home not for the actual rental they could achieve with its sea views or location, but simply for the consumption value they themselves will get from spending their holidays and weekends there, " says Hughes, " but they also know that the property is an asset in itself in the longterm." .

But depending on what angle you look at it from, holiday homes can be contentious, with the environmentally-conscious sector believing they are the ruination of some of Ireland's small rural villages and coastal towns.

"It's a difficult issue and hard to generalise about, but it's a problem not just here in Ireland but globally, "says Hughes. But he believes that while some building projects may be badly done and inappropriate for some areas, in other communities holiday homes can actually bring about a regeneration and strong seasonal employment.

Diane Holmes of Sherry FitzGerald Feeney West in Ballina agrees. "Some locals may have mixed feelings about holiday homes but generally we find that many areas do benefit from the extra population brought about by the holiday homes. Enniscrone is a very popular holiday area, and while it's like a ghosttown in winter, it's choc-ablock in summer, and because of that new shops and a hair salon have been able to open, which are good for local employment."

In the last five years, around 450 new holiday homes have been built in the Enniscrone area, and seasonal rents are strong at between 600 and 750 per week.

Mayo is another popular holiday home spot, but prices and rental potential vary greatly, says Holmes. They are currently selling a large detached bungalow with views of the Ceide Fields in north Mayo, about two miles from Ballycastle village, for 290,000. The longterm rental on a property like this would be around 140 per week, and between 350 and 400 per week in peak summer season.

In the coastal village of Easkey in Co Sligo, a holiday home would achieve between 400 and 500 per week in peak season, and around 130 per week during the winter.

In fact much of the new housing in some counties such as Kerry and Leitrim is a direct result of the booming holiday home industry. Killarney is an ideal example of a town that has developed greatly as a holiday location, and as a result property prices here are high.

A three-bed traditional cottage in Muckross, Killarney is currently on the market for 500,000 through Property Partners Gallivan. The same agent is selling a top-of-the range two-bed holiday townhouse in The Paddocks, Killorglin village for 300,000.

Elsewhere in Kerry, a new semi-detached three-bed with tax incentives, in Ard Carraig holiday home village, Kenmare costs around 325,000. But property in major tourist towns such as Kenmare and Killarney are seen as good investments.

Already Killarney town can cater for 20,000 guests per night between hotels, B&Bs and holiday homes, and visitors to the town are expected to reach six million per year by 2010, with an estimated increase of 20% year on year thereafter.

Elsewhere in west Cork, the holiday homes market has rocketed, with property prices increasing by around 9% last year. Homes with sea views or in popular towns like Baltimore, Skibbereen, and Courtmacsherry sell for premium prices. A four-bed split-level property on 2.5 acres in Baltimore is selling for in the region of 700,000, while a small mid-terrace townhouse in Skibbereen costs from around 230,000, both through local agent Henry O'Leary.

Improved road networks, low-cost domestic flights and attractive tax-incentives have combined to make Ireland a more feasible place for a weekend/holiday home than would have been the case in the past, when a drive to west Cork or Kerry could take between eight and 10 hours.

And while the best areas for rental potential for buyers looking for a good investment include west Cork, Kerry, Connemara or pretty port towns like Killibegs, where four-bed homes rents for around 1000 per week in peak season, there are some rural bargains still available.

If you're not looking for sea or lake views, and just fancy a quiet home in the countryside, Tipperary and parts of Leitrim, Roscommon and other midland counties still have plenty on offer, especially if you're willing to take on a bit of DIY work.

A three-bed house in good condition in Toomevara village, Tipperary is currently on the market for 129,000, while an old-world cottage on one-acre in Newport is selling for 140,000, while an old creamery building which needs rebuilding is available for just 50,000.

Apartment 17 is a modern harbourside apartment overlooking Newport Quay. Part of a small scheme of just 32 units, this apartment has a large balcony and accommodation includes a hall, open-plan kitchen cum living/diningroom, two bedrooms, one en suite and the main bathroom.

The property, which has a floor area of 72sq m (775sq ft) is in walk-in condition and comes with solid oak flooring throughout, and a "tted kitchen with integrated units.

Number 5 Cluain Ard, is a charming traditional house that was built just four years ago. Right in the heart of Dingle village, this property has very strong rental potential, between 800 to 900 per week in peak season, and around 200 per week for six months during the low-season. The house is in walk-in condition and comes fully furnished. Accommodation comprises a hall, lounge, small study, kitchen/diningroom, utility area and shower-room, three bedrooms . . . one en-suite . . . and the main bathroom.

An ideal home with potential for holiday rental, this spacious three-bed dormer bungalow comes with an adjoining self-contained two-bed apartment. Set on an elevated half-acre site, the entire property overlooks Killala Bay. In walking distance of Enniscrone village, the property is close to the pier, beach and local amenities.

Accommodation in the main house comprises a hall, livingroom, kitchen, diningroom, three bedrooms, bathroom and "oored attic. The adjoining apartment has two bedrooms, bathroom and kitchen cum livingroom. Both properties combined have a "oor area of 280sq m (3012sq ft), and all furniture and kitchen appliances are included in the sale.

Set on an elevated site with views over the bay and lighthouse at Courtmacsherry in west Cork, this charming two-storey cottage is deceptively spacious with four bedrooms. Presented in walk-in condition, the property has a hall, open-plan kitchen/diningroom and living area, a separate sittingroom, and bedroom and bathroom at ground level. Upstairs there are three bedrooms, a storeroom and shower-room.

A very pretty cottage with well-kept gardens front and back, this property has lots going for it, including being a short walk to the beach, and just one mile from Courtmacsherry village.