Ireland and U.S. to See Biggest Pick Up in Distressed Properties

06/07/2010 08:35

RICS Global Distressed Property Monitor Q1 2010 NEW YORK – June 7, 2010 – Ireland and the United States are set to see the biggest rise in distressed sales*, according to RICS research published today. Real estate professionals expect the number of distressed properties coming onto the market in the second quarter of 2010 to increase across 19 of the 25 countries surveyed. Respondents in Ireland and the United States expect to see the fastest growth in activity, followed by Scandinavia, New Zealand and Hungary. The UK also has seen deterioration in sentiment with the net balance of those expecting distressed sales to rise moving from 14 percent to 42 percent. However, there is positive news from Hong Kong, Australia, China and India where agents expect distressed sales to decline. In the first quarter, 17 out of the 25 countries surveyed reported an increase in distressed sales, a marginal improvement on the 18 countries reporting three months earlier. The largest growth in distressed sales was reported in the United States, followed by the Republic of Ireland and the United Arab Emirates. However, the pace of increase moderated across the majority of markets with the UAE a notable exception. RICS members work on both sides of any distressed property transaction. Consequently, the survey asked them whether the level of interest from specialist funds in distressed properties was increasing. Levels of interest rose across 20 out of 25 countries down from 21 in the previous quarter. “The issue of distressed property assets has not yet gone away despite a modest recovery in values across most global property markets in the past 6-12 months. Indeed, this is the thunderous cloud which overhangs the market despite some glimmers of light having shone through in the past year as risk appetite has improved,” said RICS senior economist Oliver Gilmartin. “The results suggest that banks may be starting to manage down their property loan books particularly in parts of Western Europe. Clearly, Ireland and the UAE stand out as markets where this process is expected to accelerate in the coming months.” Read the monitor report here. ### Note to Editors: *A distressed property is defined as a property that is under a foreclosure order or is advertised for sale by its mortgagee. Distressed property usually fetches a price that is below its market value. 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 2,300 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.