The past decade has witnessed the rapid growth in Islamic banking and finance market making it one of the fastest growing financial niche markets globally. According to the UK Financial Services Authority this is estimated to be worth between $200bn to $500bn worldwide. In the aftermath of 9/11 in the US, there has been significant flight of capital originating from the Middle East and other Islamic nations from the US to other destinations in Europe, Asia and back to the Middle East. This paper examines the growing importance of Shariah Property Investment funds in Europe. It considers the role of Shariah Property Funds in comparison with other international property funds, including: pension funds, life insurance funds, open-ended German funds, USA based and other structured funds, and joint venture partnerships. Within the context of Shariah property investment the paper will address the following: i. How can Shariah Investment Funds become a viable vehicle for property investment? ii. What are the main criteria for Shariah property investment funds? iii. To what extent Shariah investment funds are different to ethical investment funds in portfolio selection and management? iv. What is the extent of the activity of Shariah property investment funds in the UK? The paper will present the result of interviews with key players in the field of Islamic finance based in the UK carried out between 2004-2006. The interviews were conducted with international funds; specialist property investment companies, trading companies, banks equity and debt lenders, international consultants, asset managers, legal advisors and accountants based in London.