The Q2 RICS Global Commercial Property Survey suggests that the recovery in the UAE is continuing to gain traction. Significantly, this market tops the RICS Occupier Sentiment Index* (OSI) and is second in the RICS Investment Sentiment Index* (ISI). These indices are designed to chart how sentiment in various countries has changed compared with the previous three month period and are therefore not designed to capture levels. Nevertheless, they show that the tone in the real estate sector is continuing to gain ground, reversing the negative trend that characterised the market from the back end of 2009 through till the middle of last year.
By way of contrast, the feedback we are receiving from Brazil is rather more downbeat. This is particularly so for the occupier market where the headline sentiment indicator dropped to –39 from –28; it has now been in negative territory for three successive quarters reflecting softer numbers on both tenant demand and rent expectations as well as higher figures for inducements. Significantly, the ISI for Brazil is continuing to display a greater degree of resilience; although there have been some well publicised capital outflows from the country, our data continues to suggest that property investors are willing to take a longer term view of the prospects for the economy.
Source : RICS