European recovery will lag emerging markets: CBRE

Recovery in Europe and North America will lag the emerging markets and temper the pace of recovery, according to the 3Q 2009 CBRE Global MarketView. The recovery is being led by Asia, with Latin America in second place, the report said.

'Clearly, a synchronized downturn is not being followed by a synchronized recovery. Regions and countries are experiencing widely divergent trends.' The report added, however, that the market is close to 'bottom.'

'The worst does seem to be behind us.'

Pricing for quality assets is showing some uptick in both Asia and Europe, and particularly in London, the report concluded, but added that it is not clear that this activity reflects the bottom. However, a number of purchases can be called 'good buys' by most standards.

While values are rising in anticipation of recovery and based on opportunities, property market fundamentals are still deteriorating across the globe. The CBRE Global Office Rent Index shows rents falling by about 2%, quarter over quarter.