'Indian real estate, one of the better performing mkts'

Written by Agencies | New Delhi | Updated: Sep 1 2010, 02:12am hrs
According to the latest RICS Global Commercial Property Survey (GCPS), real estate performance in emerging markets, such as South America and Asia, is leading that in more developed countries.

Occupier markets picked up further in Q2, with more countries indicating that lettings demand moved higher compared to the first quarter. That said, the rise in lettings activity remains insufficient to exert upward pressure on rents in the majority of markets as available space continues to move higher in all but a handful of countries.

Indeed, rents continue to fall in 30 of the 46 countries surveyed. Available space continues to increase in 8 out of 10 countries surveyed.

Confidence towards commercial rents in Q3 2010, in India ranked 6th highest amongst 46 countries even though lettings activity ranked lower at 13th position. While confidence towards capital values in India was relatively strong at 10th rank, investment activity in India was relatively lower as compared to other countries, implying that other countries offer better investment returns.

Simon Rubinsohn, RICS chief economist, comments on the global market conditions -

The real estate world continues to be split broadly speaking between the emerging and developed economies. Strong growth in many of the former, including the likes of Brazil, Hong Kong and India, is continuing to boost demand for new space from occupiers as well as encouraging investment activity.