The supply of distressed property is expected to increase in the first quarter in more than half the countries included in the RICS Global distressed property monitor.
The RICS Monitor is a quarterly report that reveals trends in 25 commercial property markets across the globe.
In the Q4 report, agents in 15 countries reported a rise in levels of distressed property, compared with 13 countries in Q3.
Australia and Germany saw the largest changes.
Looking ahead to Q1, distressed property listings are expected to rise at a faster pace in 40% of the countries covered.
RICS added that in the UK, both investor interest and distressed property levels were on the rise in Q4.
Agents also expect an increase in distressed properties coming to market in the first quarter of 2011, but the rise is more gradual than that seen in other countries.
Simon Rubinsohn, RICS chief economist, said: “The prospect of more distressed property in real estate markets that are still under severe pressure will inevitably compound the squeeze on pricing.
“However, in those parts of the world where commercial property is enjoying more of a recovery, the prospect of further distressed assets will have only a very limited impact.”
nathan.cross@estatesgazette.com
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