Global

RICS Global Commercial Property Survey

Q3 2009

* Lettings activity showing signs of improvement
* Capital values now rising in some emerging markets
* Rental confidence lifts on better economic conditions
* Emerging Asia outperforming other world regions

The latest Global Commercial Property Survey from RICS is noticeably more upbeat than the second quarter report. Confidence in the outlook for lettings over the next three month is either less negative or more positive than previously was the case in every region of the world. Significantly, a broadly similar pattern is also visible in the responses regarding the expectations for capital values.

The more positive mood towards the occupier market has been particularly evident in what may be loosely described as Developed
Asia; Japan, Hong Kong and South Korea have all seen big improvements in confidence. Moreover, this better tone has begun to filter through to rental expectations which have, in general, become less negative. Significantly, Hong Kong actually saw the level of inducements required to attract tenants rise at a much slower pace in the third quarter with respondents to the survey also suggesting that rents have bottomed and are now likely to move higher.

Author(s): several

Source: RICS

Published: 19.11.2009