Brazil and Canada Lead Global Real Estate Growth

Capital value expectations across most of Asia and Eastern Europe are expected to remain strong through 3Q11, according to the Royal Institute of Chartered Surveyors’ 2Q11 Global and Americas Property Surveys. Brazil and Canada lead the Americas in several key indicators, including investment activity and tenant demand.

Brazil and Canada Lead Americas Growth

Canada - Capital value expectations remained strong with 38 percent of respondents expecting an increase in 3Q11. Rental expectations for 3Q11 increased, as did 2Q11 occupier demand. The report attributes Canada's healthy numbers to continued economic growth and a decline in unemployment through 2011.

United States - In the U.S., rental expectations and occupier demand moved in opposite directions. Net balance increased six percentage points in 2Q11, which indicates more commercial space is being occupied. At the same time, rental expectations dropped six points. The report attributes the drop in rent to the incentives used to close deals.

Brazil - Limited available space is keeping rental expectations strong. Net balance of development starts slowed in 2Q11, indicating the development pipeline is nearing capacity.

Eastern Europe and China Standout in EMEA

Europe - A lack of quality space in Russia led to strong occupier demand and rental expectations. The 3Q11 investment outlook for European Union countries is divided. The Czech Republic and Poland topped the global list of 3Q11 investment activity, while debt crises in Greece and Ireland put both countries at the bottom of that list.

Middle East and Asia - Rental, capital value, and investment expectations for 3Q11 are negative for Japan and the United Arab Emirates. Expected capital values in both countries have been negative for six consecutive quarters. Expectations in China and Hong Kong continue to surge, despite measures taken by their governments to cool demand