Globally the number of distressed properties listed for sale is expected to increase, the Royal Institution of Chartered Surveyors (RICS) has claimed.
According to the body's latest Global Distressed Property Monitor, the level of foreclosed homes entering the market is set to rise in 64 per cent of the countries it surveyed. Distressed property
is defined as homes that are under a foreclosure order or advertised for sale by their mortgagee.
However, there are disparities worldwide, with agents in the Republic of Ireland, Hungry, the UK and Germany expecting the biggest increases in distressed listings, while professionals in Russia and Brazil expecting to see declines.
"The prospect of more distressed property in real estate markets that are still under severe pressure will inevitably compound the squeeze on pricing," said Simon Rubinsohn, RICS chief economist.
He added that in parts of the world where commercial property is going through a more advanced stage of recovery, the prospect of further distressed assets will have a limited impact.
- Wednesday 16 March 2011