The gulf between commercial property market winners and losers is growing. There is an increasing preference for the emerging markets of Asia and Latin America. In Europe, Germany is in a positive position, according to a preview of the RICS' Global Commercial Property Survey which will be published at the end of October.
The gulf between commercial property market winners and losers is growing. There is an increasing preference for the emerging markets of Asia and Latin America. In Europe, Germany is in a positive position, according to a preview of the RICS' Global Commercial Property Survey which will be published at the end of October.
Five hundred property companies were interviewed for the survey about their views on the retail and office market in the different markets. 'Our survey shows that the signals for the German market are positive,’said Simon Rubinsohn, Chief Economist at the RICS. ‘Its economy is improving faster than originally expected.’
In addition, he noted, the German market for retail, for instance, offers many possibilities for (international) companies to develop new product. Several large German cities are not as ‘far’ as the UK in particular and this makes many investors and developers look emphatically at the German market.
According to Rubinsohn, Germany fulfils two criteria that attract property companies. It is a market that was less affected by the excessive use of debt during the boom years and there are enough possibilities to acquire and develop prime property.