The findings of the latest RICS Global Commercial Property Survey suggest that, while it is evident emerging economies are outperforming more established markets, there are notable exceptions where the divide is closing. Respondents were most upbeat in China, Hong Kong, Singapore and Brazil, and there were marked improvements in Germany and Russia. Sentiment remains weak in ‘peripheral’ European regions, as well as the UK and Japan.
Occupier markets appear to have firmed, with 75% of countries indicating greater demand from tenants than in the previous quarter. Rental expectations have been bolstered by this; just under two-thirds of countries are now anticipating rental improvements in Q1 2011.
On the investment side, capital value expectations were strongest in Latin America and non-Japan Asia. Respondents in Russia and Hong Kong also indicate strong growth in capital values. Interestingly, this survey has seen a turnaround in US investor sentiment as capital value expectations picked up; this may mean we are starting to see a stabilisation in market conditions following two years of persistent declines.
There is no better way to keep in touch with the market than through the consensus opinion of RICS’ worldwide network of qualified members. The surveys are relied upon widely by governments, central banks and the marketplace as a source of unbiased and timely research. You can view all surveys free of charge via the RICS website.
Image: Andrew Turner