Foreclosures set to rise as euro woes continue: rics

The global supply of distressed property is set to rise through to the end of the year as economic turmoil in the Eurozone lingers, according to RICS' latest Global Distressed Property Monitor.

In Europe commercial property markets find themselves facing increasingly downbeat conditions, and negative sentiment is spreading across the globe, with almost three-quarters out of the 25 countries surveyed anticipating rising levels of foreclosure in the coming quarter. Most importantly, property professionals who answered the survey expect that supply will outstrip demand in 60% of the countries covered by the survey, a sharp 20% increase compared to Q2.

On the bright side, commercial real estate markets in China and Brazil are still prospering, with both countries expecting the number of foreclosed properties coming to the market to decline over the near term. In Europe, Germany and Russia also remain fairly stable in spite of high levels of economic uncertainty. In Germany, interest in distressed properties rose slightly from July to September with respondents predicting that the number of foreclosures coming to the market is expected to stabilise over the coming months. In Russia, while levels of demand by specialist funds fell during Q3, the supply of distressed properties is also expected to decline from now until the end of the year.

Source: Property EU