Throughout 2006 old markets such as Spain and Florida were tested, buyers got a new market in the form of Montenegro and a report by Currencies Direct analysing where investors' money was flowing showed that Turkey, Bulgaria and Dubai are still hot with buyers.

2006 also saw a move towards self regulation in the overseas industry with the establishment of the Association of International Property Professionals set up to improve standards of professionalism.

Spain A readers' survey by RTE's Househunters in the Sun magazine found that 76% of Irish buyers are solely looking for an investment property; the majority are looking to spend less than 150,000 in an emerging market and want a beach side apartment or a villa in the sun. Surprisingly only 10% reported they were looking for a property in Spain! The International Monetary Fund this year once again voiced concern at the high level of property prices in Spain and The Economistmagazine's globalhouse price indicator found the Spanish market was slowing down.

However the end of year data from HolidayRentals. co. uk found that Barcelona and the Balearics were very much in demand among holiday makers looking for rental accommodation. On top of that a survey by Madrid's Chamber of Commerce found Spaniards are still optimistic about property and 68% expect the Spanish property boom to roll on.

According to Ciaran O'Carroll, an Irish agent who has lived in Marbella for 22 years, despite the recent scandals and experts' fears as long as the sun keeps shining in the Costas buyers will continue to buy!

Morocco On the hunt for the next big thing, Irish and UK investors flocked to Morocco in their droves in 2006 and snapped up properties in Marrakech, Tangiers and Agadir. "With its miles of sandy beaches, property prices at 50% less than European resorts and a thriving tourist industry, Irish buyers this year were attracted to the African country in unprecedented numbers, " reports managing director Karl Morris of Simple Overseas whose company was quick to capitalise on the appeal of Morocco and add it to its overseas portfolio.

Montenegro In 2006 the world got a new nation and a new property hotspot in the form of Montenegro, which gained independence from its more dominant neighbour Serbia.

Already using the Euro, a member of the UN and hoping to join the EU by the end of the decade the vote resulted in increased interest from Irish buyers, reports Ronnie Turner, of Turner Property Associates whose Irish company Montenegro Beaches has been selling property in the area for a number of years.

Buyers are likely to see 30% capital appreciation, says Niamh Walsh, of Lisney Overseas Residential.

Caribbean One observed element this year was Irish buyers' willingness to extend their search for new markets further afield. The Caribbean has proved popular and in particular the island of St Lucia, which has become the focal point for many agents and even Irish developers.

"It reminds me of Ireland 10 years ago, only with a lot of sunshine, " says Martin Lawless who this week launched Sunset Harbour, the latest Irish backed development on the island.

He believes the attraction of St Lucia is that property is up to 50-60% cheaper than in Barbados, there are four direct flights a day from the UK and as there is high occupancy it offers good rental return potential. The Caribbean's profile will increase in 2007 when it hosts the Cricket World Cup.

Regulation In March the Irish Association of Investment Managers sent a letter to the Minister for Justice Michael McDowell expressing their concern about the lack of regulation covering the advertising and sale of overseas property. Coincidentally, in the same month the Association of International Property Professionals (AIPP) was set up. "This is a totally unregulated market, " said the AIPP's CEO Paul Owen, "it is unacceptable that the consumer is at the mercy of his own research into companies operating in this sector. Guidance from some authoritative source is long overdue." The AIPP currently has 19 listed Irish members.

HOTSPOTS IN 2006

1Turkey 2Dubai 3Bulgaria 4Thailand 5Hungary 6India 7Cape Verde 8Poland 9Estonia 10Serbia / Montenegro Source: Global Emerging Markets Index by Currencies Direct www. currenciesdirect. com