Property investors are getting a better return in South America, Asia and Eastern Europe according to the RICS Global Property Survey.

Apart from in the recession hit UK and Eurozone countries, occupier demand is rising in the majority of nations across the globe.

Although significantly, France is bucking the negative Eurozone trend as a real estate recovery is beginning to emerge as the domestic economy improves.

Surveyors in the US have reported a rise in tenant demand across all three sectors for the first time in three years.

Brazil is leading the way with surveyors reporting a rise in occupier demand moving from 70 percent to 85 percent, with markets in Peru and China also performing well. In contrast, demand in the UK turned negative for the first time in a year with the net balance falling from a positive 14 percent to a negative four percent, while the net balances in Spain, Germany and Greece are all in negative territory.

Transactions fell in the UK for the first time in a year with the net balance of surveyors reporting a fall in activity, sliding from a positive 24 percent to a negative five percent.

More surveyors again reported a drop, rather than a rise, in activity in the UAE and Greece.

Indicators in China still remain strong despite measures introduced by the Chinese government to address the property boom.

Indicators for occupier demand, rental expectations and the number of investment bidders per property all remain firmly in positive territory.

Elsewhere in Asia, the latest numbers from India suggest a strong showing from real estate in the second quarter despite the increase in interest rates.

Other key points of the report include:
• New development starts are rising in Brazil, Peru and Argentina;
• Surveyors are reporting the first declines in Japanese yields since 2007;
• Investment bidders per property rose at a faster pace in the US;
• Capital values are still declining in Ireland, Spain and Greece;
• Occupier enquiries are strong in Brazil and Republic of Ireland;
• UAE indicators are less negative than in Q1;
• Rents are now increasing in the Ukraine.

RICS chief economist Simon Rubinsohn said: “The real estate world continues to be split broadly speaking between the emerging and developed economies.

“Strong growth in many of the former, including the likes of Brazil, Hong Kong and India, is continuing to boost demand for new space from occupiers as well as encouraging investment activity.

“Meanwhile in many of the latter, fiscal retrenchment allied to bank de-leveraging continues to place significant obstacles in the way of a meaningful recovery in the commercial property market.”

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