More than 80% of the countries surveyed in the RICS Global Distressed Commercial Property Monitor experienced an increase in distressed commercial property sales during the third quarter of 2009, according to new research published by the UK-based organisation.
More than 80% of the countries surveyed in the RICS Global Distressed Commercial Property Monitor experienced an increase in distressed commercial property sales during the third quarter of 2009, according to new research published by the UK-based organisation.
The biggest pick-up in distressed sales was reported in South Africa, followed by the US, Portugal and France but the pace of increase moderated across the majority of markets compared to the second quarter. However, China, Hong Kong and Brazil reported a decline in the number of distressed properties coming onto the market, RICS said.
Looking ahead, real estate professionals expect the flow of distressed properties to increase into the fourth quarter across 19 of the 25 countries surveyed. Russia, US, Spain and Ireland are expected to see the biggest increase, with New Zealand, Italy, Malaysia and Germany next in line.
The RICS survey asked surveyors whether the level of interest from specialist funds in distressed properties was increasing. Levels of interest rose across 18 out of 25 countries and at a faster pace than the previous quarter with China, Russia, Australia, India and the Ukraine leading the way.
Respondents also said that banks have not been quick to foreclose on properties in breach of loan agreements. RICS expects distressed property listings to become a bigger feature of the global property landscape in the coming year, providing a window of opportunity for banks to manage down some of their property loan exposure.
'Despite unconventional monetary measures across some economies, the reluctance of banks to extend lending remains one major obstacle to a buoyant occupier recovery,' said RICS senior economist Oliver Gilmartin.
