Categorized | Commercial

Expectations for Global Commercial Real Estate Market are Bleak

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With a European debt crisis looming, and the United States economy in shambles, it should come as no surprise that the overall global commercial real estate market is expected to decline in the coming months. The majority of Europe is expected to experience serious declines in sales volume and price, with Germany being the only exception.

The commercial property market in the United States also has a dim outlook for the fourth fiscal quarter. Both weakening consumer confidence and tightened lending standards are widely considered to be playing the most significant roles in the decline in the United States.

While the United States and Europe have been the primary focus when discussing weakened commercial property markets, the reality is that sixty-six percent of countries around the world are expected to experience negative growth in their respective commercial property markets.

The countries that present the strongest commercial real estate market are China, Brazil, and Russia. Germany, too, is expected to experience strong gains. Despite its recent struggles, Japan is expected to show improvement in the following quarter as well.

Brazil’s commercial property market has flourished throughout the year, as it has become one of the world’s fastest growing nations. Both demand and overall values in the commercial real estate market continue to soar, and will likely continue to do so into the fourth quarter.

China’s market still remains fairly strong despite government intervention intended to level off, or even decrease prices. Despite the government’s stringent policies, demand for commercial real estate in the country is higher than ever, and will likely continue into the fourth quarter and beyond.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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