The number of countries in which real estate professionals are reporting greater interest in distressed properties has risen dramatically, according to a global report published by the royal Institute of Chartered Surveyors (RICS). Expectations for increased distressed property sales in the coming months are highest in Ireland, the US, Spain, Portugal and Hungary.
The number of countries in which real estate professionals are reporting greater interest in distressed properties has risen dramatically, according to a global report published by the royal Institute of Chartered Surveyors (RICS). Expectations for increased distressed property sales in the coming months are highest in Ireland, the US, Spain, Portugal and Hungary.
According to the results, 20 countries witnessed increased interest from specialist funds in distressed properties in the third quarter, compared to 11 in the second quarter. Growth in interest from specialist funds was highest in Ireland and Spain although respondents have reported a pick up in interest across most markets with only Russia apparently seeing an easing of specialist fund interest.
Despite the slight decrease in the third quarter, respondents expect the number of distressed properties coming onto the market in the fourth quarter of 2010 to increase across 16 of the 25 countries surveyed - an increase of two countries over the last quarter.
Significantly decreases are also expected for Russia, South Africa, Brazil and Germany - the latter experiencing the most notable turnaround in sentiment since last quarter.
Commenting, Oliver Gilmartin, RICS senior economist said: 'With the commercial property market recovery faltering across several countries in the third quarter there is an expectation that banks might be becoming less lenient in extending terms for real estate loans. Renewed falls in rental values may also be making banks more nervous as to the size of their property loan books.
'Significantly, specialist investors appear to be showing increasing interest in distressed property listings. However, ultimately banks hold the keys as to how the market for distressed property listings will evolve in the coming year.'