Irish investors specifically accounted for approximately Euro11bn of investment activity on European property in 2006, spending approximately Euro3.3bn domestically and almost Euro8bn overseas.

Increased turnover was recorded in all of the 25 European countries covered by the survey, carried out by the CB Richard Ellis group (CBRE), although the rates of growth varied considerably. In five of the countries, including Germany, the level of investment activity more than doubled.

The smallest increase was in the UK.

Despite the slower growth in the UK, it remains the most liquid market in Europe, accounting for around a third of the value of all transactions.

The phenomenal growth of the German market has propelled it into a clear second place. Although activity in France increased by nearly 50% year-on-year, the country fell behind Germany to third.

In line with 2005, the highest proportion of activity was in the office sector, followed by retail. However, it is evident that investors are increasingly prepared to consider other sectors, with substantial increases in the turnover of mixed-use properties, hotels and other leisure property.

In their recent Outlook 2007 report, the property consultants said the weight of Irish money chasing opportunities will continue unabated during 2007.

"Investors appetite for real estate investment has continued to grow, despite the increases in euro interest rates over the course of 2006, " says Jonathan Hull, executive director in CBRE's EMEA Investment team.