East-West difference in demand revealed
Investor demand for real estate in western Europe continues to be much stronger than occupier demand, with the reverse being the case for Asia and eastern Europe, the Royal Institution of Chartered Surveyors claims.
The first RICS Global Property Survey, based on information collected from over 60 cities around the world examined trends in occupier and investment activity during the second half of 2004
compared with the first six months.
Business real estate requirements are rising strongly in the emerging economies of Asia and Eastern Europe where low labour costs and increased
corporate investment are boosting demand for
commercial real estate.
By comparison, occupier demand
is almost flat in western Europe, with the notable exception being the London market, although investors are still “piling into the
sector”, according to the Royal
Institute of Chartered Surveyors.
In Asia, while investor demand
is still strong, it is outpaced by
occupier demand, which suggests that it will be a higher-return environment for investors.