According to CB Richard Ellis (CBRE) the total overseas spend this year is already 3bn, with most of this money invested in properties in the UK and in Europe. Although the Irish market remains strong . . .

despite recent interest rate hikes . . . more investors are seeking out overseas opportunities in order to diversify their portfolio.

Local investment will this year exceed the 2bn achieved in 2005, which was twice the previous year's total, the firm says. "The reason the overseas figure adds up to so much more than what's spent at home is down to liquidity - there simply isn't that much property to go around in Ireland, " says Sean O'Brien of CBRE's investment division.

"You would definitely see higher turnover at home if the Irish market was bigger.

Interest rates may be trading up but there is strong confidence in the home market and people do have the money to invest. Ours is still a benign environment for investment, " he said.

CBRE has this year acted on 18 Irish deals overseas totalling 1.3bn. Among the deals concluded were the recently completed 195m purchase of 197-213 Oxford Street, London and another off market retail deal, also on Oxford Street, for 88m. In the office sector, the company advised on the acquisition of a fully-let building in the English capital for about 74m.

Other UK regional deals include the purchase of a prime, fully-let 53m office investment in the centre of Manchester. The firm also orchestrated the purchase of the Lateral building in Leeds for about 56m. Irish investors have also been involved in noteworthy purchases in Belgium, the Netherlands and Germany.

Property consultants Lisney has in the past 12 months acquired over 120m worth of German property for Irish investors. The firm currently has a further 480m under due diligence.

"In Germany, Irish investors appear to have a special appetite for retail stock due to the excellent returns this sector provided in Ireland and as the German office market still suffers from oversupply, " says Robert Janke of Lisneys.