Jul
31

RICS Global Commercial Property Survey Q2 2008 Released

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RICS, the largest organization for professionals in property, land, construction and related environmental issues worldwide, today released the highly-anticipated RICS Global Commercial Property Survey for the second quarter of 2008. RICS members worldwide submitted office, retail and industrial market data for their respective markets, which was then compiled and analyzed on a global scale for the second quarter of 2008 in comparison to Q1 2008 and 2007 data.

Major trends drawn from the survey results include:

• A rise in yields was recorded in emerging markets for the first time in the survey’s history as aggressive inflation fighting in some emerging market locations has impacted upon commercial property pricing.

• The pace of capital values growth halved in the developing world.

• Deterioration in occupier activity/increased vacancy across the developed world in Q2 with some emerging markets also losing steam.

• Tenant demand fell at a faster pace in the developed world in the second quarter as compared to the first quarter of 2008.

• Transaction volumes and capital values plummeted as the commercial property market suffered under financial liquidity constraints, with the worst hit areas being North America, Australasia, Western Europe and to a lesser degree Developed Asia. Office, industrial and Retail sectors all suffered with the retail market the most depressed area and the office sector dropping to a further low.

• Rental expectations were most negative across North America and Developed Asia primarily as a result of weaker U.S. and Japanese economies respectively. Rental expectations remain positive across Australasia and other emerging markets, except for retail sectors of Emerging Europe where rents stagnated in Q2.

• Commercial investment activity continued to slide in all regions with poor activity across North America. Latin America was the exception showing investment growth.

• The weakest investment markets were seen in North America, Australasia and Western Europe. Indeed, of the more than 50 countries surveyed, 7 of the 10 worst performing countries are located in Western Europe with the most negative sentiment towards prices for Q3 expected in the Republic of Ireland and Spain. Outside Western Europe, Hungary, New Zealand and South Africa displayed the most negative sentiment towards future prices with the US positioned only one place above the bottom 10.

To view the RICS Survey in PDF form please visit:
http://www.ricsamericas.org/uploads/files/RICSGlobalCommercialPropertySurveyQ22008.pdf
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