“This investment is dominated by fund managers, rather than investors buying directly, so there is an extent to which they represent a conduit for global capital rather than just U.S. money,” Ludeman says. “Nonetheless, the increase over the last few quarters has been remarkable.

“Another feature is the range of locations that US investors are seeking out with general pricing in Europe seen as attractive and 'recovery play' investments more accessible currently than in the U.S.”

U.S.-based investors targeted a range of European locations, with assets acquired in at least 15 European countries in H1 2014. The city that attracted the biggest concentration of U.S. investment was Paris, at more than $2.5 billion (€1.9 billion).

The growth in "recovery play" investment was also evident in H1 2014. In Ireland, where the vast majority of transactions took place in Dublin, overseas buyers have been the main driver of growth in investment, with U.S. capital making the biggest contribution. Investors such as Blackstone, Hines, Kennedy Wilson and Lone Star all made significant acquisitions in Dublin in H1 2014, drawn in by the economic recovery story and prime yields that are attractive compared to many other European capitals. U.S. investors accounted for 43% of the investment volume in Dublin in H1 2014.

U.S. investors have also increased their activity in the Netherlands—a market in which they have not traditionally been active. These acquisitions were spread across the whole of the country, but did include some significant purchases in the main commercial city, Amsterdam.