Demand for distressed property rose significantly around the world during the second quarter of the year, the latest research from the Royal Institution of Chartered Surveyors (RICS) shows. According to the study, the number of investors and funds seeking this kind of asset will exceed supply in several nations, particularly Japan, China and Singapore.
However, the reverse is expected to be true in some European countries, such as Spain, Italy and the Republic of Ireland. Rics chief economist Simon Rubinsohn commented that the results of the survey were "interesting", although he stressed that the rise in demand can, in some cases, be attributed to the assets available in individual markets. But he added: "This may be seen as an encouraging development reflecting the measure of confidence in the outlook for the real estate sector despite the softer tone of the macro news flow."
Earlier this month, property fund manager at AEGON Asset Management Sarah Cockburn asserted that banks in the UK will be disposing of their distressed assets over a prolonged period of time to avoid flooding the market and bringing down the value of their portfolios.
- Friday 26 August 2011