A recent survey done about the commercial real estate market by an independent, representative professional body which regulates property professionals and surveyors in UK — Royal Institution of Chartered Surveyors or RICS, they have found out that Latin America and Asia commercial property rents and assessments to climbed during the first quarter of 2011.
Another report done by other firm — Jones Lang La Salle Inc., global commercial property investment might possible rise by 25 percent or about to $380 billion for 2011, after investors’ returning confidence created the most deals during the 4th quarter since 2007 peak. The Europe and Americas showed the strongest recovery in 2010, with Brazil recorded about $3.4 billion.
The fast growing commercial real estate in both regions plays a huge role for the increase on their commercial property rents and assessments.
The United States’ struggling market is also showing stable signs of recovery, as investors began trusting the nation’s much-stable real estate market again, according to RICS’ survey.
But rental expectations in the U.S is till on the negative side, although lesser than previous figures.
RICS polled about 410 of its international members, and found out that expectations on commercial property rents in prime markets including Brazil, Singapore, China, and Hong Kong are the most optimistic.
Expectations for the commercial property rents in Peru, like the Asian countries and Brazil, is particularly positive, but excluding Japan, which expects another decline on their commercial property rents.
But, in other European countries like Greece, Ireland, and Spain, will continue to expect declines on their commercial property rents and assessments, according to RICS’ survey.
According to RICS chief economist, Simon Rubinsohn, the stability of the commercial property rents and property assessments in Latin America, Asia, and some parts of Eastern Europe is providing a significant support on their real estate market.