News »
10. Februar 2012 
Print
Print
Investor appetite grows as commercial foreclosures keep rising globally
While investor appetite rose dramatically towards the end of 2011, the level of distressed properties* coming to the market is set to keep on rising globally, according to RICS.
Released today, the latest RICS Global Distressed Property Monitor reveals that two thirds of the countries surveyed anticipate a rise in forced selling of commercial buildings for the first quarter of 2012. Unsurprisingly, the number of commercial foreclosures is set to rise at the fastest pace in the Euro area.
Once again, the countries at the centre of the eurozone debt crisis are worst hit. The Republic of Ireland, Portugal, Spain and Italy expect the highest number of foreclosures. As previous reports have shown, the highly volatile economic and financial context has started to affect steadier markets. Property professionals in France and Germany also anticipate more distressed selling.
The survey also highlights a sharp increase in worldwide demand for distressed properties. Over 80% of the countries surveyed reported rising levels of interest from specialist funds from October to December 2011. Investor demand rose at the fastest pace in Scandinavia, where 45% more respondents saw mounting interest. This was closely followed by Italy, France and Japan. By way of contrast, only China, Singapore and the Czech Republic reported falling investor appetite during the past three months.
Interestingly, more countries reported an expected fall in supply (up to seven from five during the 3rd quarter). However, a majority of respondents in Europe still expect supply to exceed demand. Here again, the Republic of Ireland and southern Europe** are at the top of the rankings, closely followed by France and Hungary.
Commenting on the survey RICS Chief Economist Simon Rubinsohn said:
“The economic news flow remains mixed at best, and sentiment in the real estate sector is still fragile in much of the world as a consequence. In particular given the ongoing and intensifying problems in Europe, it is little surprise that respondents in many of these countries are more pessimistic. That said, the rise up in the number of countries reporting rising investor appetite for distressed assets maybe viewed as an indication that prices in the market place are getting closer to offering value.”
* Distressed property: A distressed property is defined as a property that is under a foreclosure order or is advertised for sale by its mortgagee. Distressed properties usually fetch a price that is below their market value. An increased rate of distressed properties entering a country’s market can be seen as a negative economic indicator while a decrease may signal recovery.
** Southern Europe: Italy, Spain and Portugal
Released today, the latest RICS Global Distressed Property Monitor reveals that two thirds of the countries surveyed anticipate a rise in forced selling of commercial buildings for the first quarter of 2012. Unsurprisingly, the number of commercial foreclosures is set to rise at the fastest pace in the Euro area.
Once again, the countries at the centre of the eurozone debt crisis are worst hit. The Republic of Ireland, Portugal, Spain and Italy expect the highest number of foreclosures. As previous reports have shown, the highly volatile economic and financial context has started to affect steadier markets. Property professionals in France and Germany also anticipate more distressed selling.
The survey also highlights a sharp increase in worldwide demand for distressed properties. Over 80% of the countries surveyed reported rising levels of interest from specialist funds from October to December 2011. Investor demand rose at the fastest pace in Scandinavia, where 45% more respondents saw mounting interest. This was closely followed by Italy, France and Japan. By way of contrast, only China, Singapore and the Czech Republic reported falling investor appetite during the past three months.
Interestingly, more countries reported an expected fall in supply (up to seven from five during the 3rd quarter). However, a majority of respondents in Europe still expect supply to exceed demand. Here again, the Republic of Ireland and southern Europe** are at the top of the rankings, closely followed by France and Hungary.
Commenting on the survey RICS Chief Economist Simon Rubinsohn said:
“The economic news flow remains mixed at best, and sentiment in the real estate sector is still fragile in much of the world as a consequence. In particular given the ongoing and intensifying problems in Europe, it is little surprise that respondents in many of these countries are more pessimistic. That said, the rise up in the number of countries reporting rising investor appetite for distressed assets maybe viewed as an indication that prices in the market place are getting closer to offering value.”
* Distressed property: A distressed property is defined as a property that is under a foreclosure order or is advertised for sale by its mortgagee. Distressed properties usually fetch a price that is below their market value. An increased rate of distressed properties entering a country’s market can be seen as a negative economic indicator while a decrease may signal recovery.
** Southern Europe: Italy, Spain and Portugal
