Emerging Markets Outperform Developed Nations in Real Estate, Survey Reveals
A recent RICS Global Commercial Property Survey (GCPS) has unveiled that emerging markets, particularly in South America and Asia, are demonstrating significantly stronger real estate performance compared to their more developed counterparts. This striking contrast highlights the dynamism and growth potential of these emerging regions.
Occupier Market Trends: Rising Demand, Falling Rents
The second quarter of the year witnessed a notable surge in occupier markets, with many countries reporting increased lease demand compared to the first quarter. This positive trend suggests a growing appetite for commercial spaces in these markets. However, despite the increased demand, rents continued to decline in thirty out of the forty-six countries surveyed. Simultaneously, eight out of ten countries experienced a continuous increase in available spaces, indicating a potential oversupply in certain markets.
Optimistic Outlook for Q3 2010
Despite the mixed picture of rising demand and falling rents, expectations for the third quarter of 2010 remain high, suggesting a sense of optimism among market participants about the future trajectory of the real estate sector.
India's Performance: Strong Rental and Capital Value Growth
India emerged as a strong performer in the survey, ranking sixth highest among the forty-six countries in terms of commercial rents. In the area of lettings, India secured the thirteenth position, further demonstrating the country's attractiveness to occupiers. Moreover, India achieved the tenth position in capital values, indicating healthy growth in property valuations. However, investment activity in India remained relatively lower compared to other countries surveyed, suggesting that investment returns may be more attractive in other regions.
"This indicates that investment returns are better in other countries."