by Brianna Crandall — November 30, 2015—In keeping with the mixed overall economic picture around the world, the commercial property sector reflects somewhat varied sentiment across global investor and occupier markets, according to U.K.-based global real estate organization RICS (Royal Institution of Chartered Surveyors).
In keeping with the mixed overall economic picture around the world, the commercial property sector reflects somewhat varied sentiment across global investor and occupier markets.
Feedback from Portugal, Ireland and Japan is particularly upbeat, while China, Russia and Brazil are prime examples of weakness among emerging markets.
These findings emerged from the Global Commercial Property Monitor for the third quarter (Q3) of 2015. The survey tracks the sentiment of RICS members working in real estate in 29 global markets and is released quarterly as a guide to the market outlook.
The data is a useful guide for governments, investors and other property professionals on where the commercial real estate markets are headed.
Upbeat market
Commercial property in Ireland, Portugal and Japan are expected to post significant gains in value and rents over the next twelve months. Likewise, solid value and rental increases are also expected in Hungary, Spain, the United Kingdom, New Zealand and the United States.
New data on how RICS members perceive what stage of the property cycle their local market is currently at builds a stronger picture of the commercial property sector.
Emerging market weakness
Weakness in China has had a knock-on effect on other parts of Asia. Singapore, Hong Kong and Indonesia all displayed negative readings for both the RICS Investment Sentiment Index (ISI) and the RICS Occupier Sentiment Index (OSI).
In Russia and Brazil the outlook is somewhat gloomy, with each country feeling the damaging impact of ongoing recessions, compounded by the renewed weakness in oil and commodity prices during Q3.
Property cycles
In an attempt to build a stronger picture of the global commercial property sector, RICS asked respondents their perceptions on what stage of the property cycle their local market is currently at. 43% of respondents in Germany felt that market conditions are reaching the top of the cycle. 40% of respondents in New Zealand and 38% in Hong Kong also perceive the market is nearing its peak.
