Investment Cash Returns To Commercial Property

01/27/2010 14:30

But U.S. Still Reports Drop in Activity LONDON – January 27, 2010 – Investor activity rose across 70 percent of the Globe as commercial property recovered as an asset class according to RICS’ Global Commercial Property Survey for the fourth quarter of 2009, released today. Commercial property transactions rose across the majority of the globe with Brazil and China leading the way. With generally low interest rates and relatively high yields, investors have returned to commercial property. The net balance of property professionals reporting a rise in transactions in Brazil rose from 29 percent to 61 percent in the fourth quarter, while the net balance in China edged up to 58 percent from 47 percent. By way of contrast, more property professionals again reported a drop in activity in the United States. Occupier demand has also been most visible across the emerging economies with lettings activity picking up most in Latin America, emerging Europe and most of Asia. The United Kingdom property recovery was led by the London office market, with the amount of available space declining for the first time in two years. However, elsewhere in the UK and across 90 percent of the globe, the amount of available space continued to rise. There were some notable exceptions: Brazil, Peru, Venezuela, Austria, Hong Kong and Ghana are all witnessing mild declines. Property professionals indicate they are confident the emerging economies, particularly in Latin America and Asia, will continue to lead the property recovery into the first quarter of 2010 but concerns persist over the outlook for some of the more developed real estate markets. They generally remain downbeat on the United States, Japan, Germany, Italy and the United Arab Emirates. “The latest Global Commercial Property Survey demonstrates in the clearest possible terms that it is emerging real estate markets where sentiment has turned around most significantly,” said RICS chief economist Simon Rubinsohn. “Crucially, the improvement in investor appetite is being accompanied by a firmer tone to the rental market. This is key to ensuring that the recovery proves sustainable.” “The strength of the results contained in the survey for Latin America and Asia are a reflection of the unfolding economic recovery with many of the more developed markets likely to be hampered by the challenges resulting from the ballooning of public sector debt and need of the authorities to gradually exit from emergency monetary conditions.” Read the survey report here. ### About the Global Property Commercial Survey RICS’ Global Commercial Property Survey is a quarterly guide to the developing trends in the commercial property investment and occupier market. This edition details market conditions for the 4th quarter of 2009 based on information collected from leading international real estate organizations and local firms. About RICS & RICS Americas RICS (Royal Institution of Chartered Surveyors), with headquarters in London, is the leading organization of its kind in the world for more than 100,000 professionals in property, land, construction and related environmental issues. RICS Americas, based in New York and covering North, Central and South America and the Caribbean, has more than 2,200 members in commercial and residential development, construction and project management, brokerage, planning and finance, valuation and fine arts appraisal. For further information visit www.ricsamericas.org or e-mail ricsamericas@rics.org.