Distressed Properties Increase According to RICS Global Distressed Property Monitor Q3 2009

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) November 24, 2009 -- More than 80 percent of countries surveyed saw a rise in distressed sales* in the commercial property market, according to RICS research published today.

During the third quarter of 2009, RICS surveyed members and other real estate executives in 25 countries around the globe to ascertain the volume of distressed sales in the commercial property market. Respondents in 80 percent of the countries surveyed reported an increase in distressed sales compared to three months earlier. The biggest pick up in distressed sales was reported in South Africa, followed by the United States, Portugal and France but the pace of increase moderated across the majority of markets compared to the second quarter. However, China, Hong Kong and Brazil reported a decline in the number of distressed properties coming onto the market.

Looking ahead, real estate professionals expect the number of distressed properties coming onto the market to increase into the fourth quarter across 19 of the 25 countries surveyed. Russia, the Untied States, Spain and Ireland are expected to see the biggest rise, with New Zealand, Italy, Malaysia and Germany next in line. However, property professionals are more optimistic in Brazil, Hong Kong and India and expect fewer distressed property listings in these countries.

RICS members work on both sides of any distressed property transaction. Consequently, the survey asked them whether the level of interest from specialist funds in distressed properties was increasing. Levels of interest rose across 18 out of 25 countries and at a faster pace than the previous quarter with China, Russia, Australia, India and the Ukraine leading the way.

RICS also asked member firms and agents to comment on the speed at which they thought banks are foreclosing on commercial property deals compared to three months earlier. Encouragingly, respondents suggest that, as yet, banks are not overly hasty on foreclosing on properties in breach of loan agreements with less than two-in-ten property professionals reporting an increase in the speed of foreclosure, which was in line with the previous quarter.

Read the report here: http://www.ricsamericas.org/files/editor/file/Global%20Commercial%20Property%20Survey/RICS%20Distressed%20Properties.pdf

Note to Editors:
*A distressed property is defined as a property that is under a foreclosure order or is advertised for sale by its mortgagee. Distressed property usually fetches a price that is below its market value.

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