According to the latest RICS Global Commercial Property Survey, sentiment in real estate markets has been reasonably positive outside of Europe. This is most pronounced in Asia, where the results for both occupier and investment markets paint a fairly robust picture. Both rental and capital values have been indicating healthy increases in countries such as Thailand, Hong Kong and China.
In India, macro-economic numbers for both industrial production and exports are showing a slightly better tone. However, it is a little premature to be confident that this trend will prove to be sustainable in the long run. The better pattern for realty markets in the country is visible in the investment market, which is also starting to filter through to the occupier side as well. In India, investment enquiries edged up and elicited a positive trend for the first time since 2011. Consequently, forward looking measures for expected transactions and capital values are also staying upbeat, spilling over from the positive results of the previous quarter.
Commenting on the survey with respect to global commercial property, Simon Rubinsohn, RICS Chief Economist, said:
"Asia appears to remain a particularly attractive location for investors seeking out commercial real estate assets with sentiment still strongly positive. But just as interesting is the emerging trend in the UAE, where the mood is improving in a material way after the most calamitous of downturns, and the US, which now seems to be firmly in recovery mode.
Of course, the global economy continues to face significant risks but the numbers suggest that property continues to be viewed in a generally positive light away from Europe where the news flow for real estate still remains particularly challenging. "
In fact, India has improved its overall global ranking by 10 places with respect to occupier demand and available space, ranking 9 in Q4 as compared to 19 in Q3 2012.
While India still ranks behind Thailand, Hong Kong and China on these parameters, as was the case the previous quarter as well, it has however improved its ranking considerably, as a consequence of which it has improved its performance over Japan.
On the investment side, enquiries have once again picked up pace during the last quarter of 2012. Both investment activity and prices are looking to be positive for the second consecutive quarter, with enquires for the office segment being the most pronounced, followed by the retail sector.
In India, macro-economic numbers for both industrial production and exports are showing a slightly better tone. However, it is a little premature to be confident that this trend will prove to be sustainable in the long run. The better pattern for realty markets in the country is visible in the investment market, which is also starting to filter through to the occupier side as well. In India, investment enquiries edged up and elicited a positive trend for the first time since 2011. Consequently, forward looking measures for expected transactions and capital values are also staying upbeat, spilling over from the positive results of the previous quarter.
Commenting on the survey with respect to global commercial property, Simon Rubinsohn, RICS Chief Economist, said:
"Asia appears to remain a particularly attractive location for investors seeking out commercial real estate assets with sentiment still strongly positive. But just as interesting is the emerging trend in the UAE, where the mood is improving in a material way after the most calamitous of downturns, and the US, which now seems to be firmly in recovery mode.
Of course, the global economy continues to face significant risks but the numbers suggest that property continues to be viewed in a generally positive light away from Europe where the news flow for real estate still remains particularly challenging. "
In fact, India has improved its overall global ranking by 10 places with respect to occupier demand and available space, ranking 9 in Q4 as compared to 19 in Q3 2012.
While India still ranks behind Thailand, Hong Kong and China on these parameters, as was the case the previous quarter as well, it has however improved its ranking considerably, as a consequence of which it has improved its performance over Japan.
On the investment side, enquiries have once again picked up pace during the last quarter of 2012. Both investment activity and prices are looking to be positive for the second consecutive quarter, with enquires for the office segment being the most pronounced, followed by the retail sector.