Emerging Markets Lead Global Commercial Real Estate Recovery

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Demand for commercial property in Europe is growing, but it's emerging markets leading the recovery, according to the latest survey by the Royal Institution of Chartered Surveyors.

Data points to a "two speed" recovery, the RICS says. Emerging Asia and Latin America led the way in the third quarter, in particular China, Hong Kong, Brazil and Singapore.

"Many of the emerging markets that were relatively unscathed by the financial crisis are experiencing faster growth than developed economies such as the UK, Eurozone and the U.S." RICS says.

In Europe, demand is increasing in 14 or the markets surveyed, compared to 10 in the second quarter. But oversupply and other factors will continue to dampen many markets.

"The more heavily indebted countries in Western Europe, Japan and the U.S. face increasing problems with deleveraging and potential new regulation," RICS chief economist Simon Rubinsohn said in a press release. "This is likely to continue to be a drag on their performance for some time to come. Meanwhile, capital flows are likely to be increasingly directed towards real estate opportunities in the emerging world.''

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