The Q1 2017 RICS Global Commercial Property Monitor shows sentiment improving (or becoming less negative) in the majority of markets reported on in this survey. This is broadly consistent with macroeconomic news flow which generally continues to surprise on the upside. That said, feedback from respondents still remains somewhat cautious in parts of Asia and the Middle East.
The headline Occupier Sentiment Index improved in 22 of the 32 countries tracked (chart 1), relative to the average readings over the previous two quarters. As has been the case now for a number of quarters, the leading group in terms of occupier market momentum remains primarily comprised of European cities. These include Madrid, Budapest, Dublin, Munich, Berlin and Lisbon, while away from Europe, Sydney and Auckland also continue to record strong OSI readings. Even so, the results from Sydney contrast with those for Australia as a whole. Subdued demand growth at the national level is anticipated to lead to only marginal near term rental increases, while Sydney is seeing a much stronger rise in tenant interest and therefore expected to post stronger rental gains.
Source : RICS