After a year of malaise, the Russian property market rebounded with positive rents and capital values in the first quarter of 2010, according to the RICS Global Property Survey published today. At the same time, rental declines are easing in UK, France and Germany. However, there is little relief yet on this front in Greece, Ireland, Spain, Hungary and Turkey.
After a year of malaise, the Russian property market rebounded with positive rents and capital values in the first quarter of 2010, according to the RICS Global Property Survey published today. At the same time, rental declines are easing in UK, France and Germany. However, there is little relief yet on this front in Greece, Ireland, Spain, Hungary and Turkey.
The commercial property upswing signalled in the second half of 2009 has persisted in the first months of this year, with Latin America and Asia leading the way. In Europe the recovery is starting to move slowly into some Eastern European countries, with the net balance of surveyors reporting on capital values turning positive in Russia, Poland and the Czech Republic.
RICS chief economist Simon Rubinsohn said: 'The Latin American and Asian markets are still leading the commercial real estate recovery although there are some signs that the improving picture is spreading to other parts of the world. Significantly, there also has been a rebound in the US market with cheap property starting to attract investors for the first time in three years. However, one challenge still to be overcome in much of the developed world is the overhang of public sector debt. This could have consequences for both occupier activity and the ongoing strength of the investment recovery reflecting both the rationalisation of government property space and the potential for higher borrowing costs.'