Irish investors are expected to pump close to €12 billion into international commercial property this year on top of the €11 billion invested in 2006, according to a report by Bank of Ireland. A bi-annual report by the bank's private banking arm indicated almost $680 billion was invested overall globally in commercial property in 2006, up nearly 40 per cent from 2005. But the bank said that property investment markets reached a turning point last year, with the drivers of return switching from low or falling interest rates and yield compression, to strong rental growth and property asset management. Pat O'Sullivan, head of investment strategy for Bank of Ireland Private Banking said: "2006 was another spectacular year for property across most sectors and locations...Going forward, the key drivers of return will be rental growth and the ability to extract value through development and active asset management." While the majority of Irish investment is concentrated on the Irish and UK market, investors are displaying increased appetite for US, European and Asian markets. The bank's own portfolio of properties produced 22 per cent annualised returns at the end of 2006. A DTZ survey last year revealed that Ireland had overtaken the US as the single largest cross-border investor into UK commercial property, accounting for almost 22 per cent of total overseas purchases. Leading Irish investors making a mark in London are Warren Private Clients, Cosgrave Property Group, Quinlan Private and D2 Private, which is mulling a flotation.