Examines why cross-border European property investment, hampered historically by structural differences between national markets, is now attracting increasing interest. Describes the steep rise in European all-property investment volumes, the strong appetite for indirect investment through pan-European funds and fund activity over the last six months in the Central Eastern Europe sector. Focuses on the European residential property sector as an alternative to the highly competitive European commercial property sector and looks at fund development. Reports that London and Paris remain investor favourites despite escalating capital flows towards Central and Eastern Europe and predicts that further residential investment in London will be led by Chinese and Indian investors. Concludes that a balancing act of east v west investment is on the menu. Tables cover new and closed pan-European funds. Figures detail a basic European fund structure for the UK and total European office investment transaction volumes.