European Rental, Property Prices On The Rise

By Editorial 12 May, 2014

Investor sentiment in the real estate sector in Russia declined in the first quarter of 2014, despite an upturn globally, according to the latest Global Commercial Property Monitor from the Royal Institution of Chartered Surveyors (RICS).

The report notes that in Europe investment sentiment rebounded in a number of hard hit euro area markets, while Russia experienced a sharp reversal.

Sentiment remains particularly downbeat throughout France and the Netherlands, despite both of these countries formally exiting recession during the latter part of 2013.

In contrast, a significant improvement is now visible in Ireland, Spain, and Portugal. In fact, investment transaction expectations are now higher in these three markets than in any other countries in the survey. Going forward, this is anticipated to translate into a sharp rise in transactions, the report says.

In Spain and Portugal rents are expected to remain broadly stable in the near term, but are expected to rise throughout this year. Ireland is also expected to see a rental market improvement. The rental market in both the UK and Germany continues to be strong.

Outside Europe, the United Arab Emirates (UAE) and Japan are once again the best performers in the latest report, with very positive readings and healthy rental and capital value gains expected during the course of 2014. Upbeat results were also returned from contributors to the survey from the US, New Zealand, and Singapore real estate markets.

In China, headline activity in the occupier market appears to have turned relatively flat, while progress on the investment side is still seeing a modest uptick, the report says.

Figures in Brazil continue to deteriorate, with rents and capital values expected to decline as moderating growth and higher interest rates take their toll on the real estate market.

Tags: Russia | United Arab Emirates | Investment | Real-estate Investment | India | Ireland | Netherlands | Portugal | Interest | Real-estate | China | Singapore | Unemployment | Brazil | France | Germany | New Zealand | Spain | Japan | Expats | Europe |


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