Better employment prospects, growing business confidence and an expectation for solid economic growth over the course of 2011 have helped to bolster the commercial real estate market in Russia during the fourth quarter of 2010.
According to the Royal Institute for Chartered Surveyors' (RICS) Global Commercial Property Survey, investor sentiment is improving around the world.
In Russia, rental expectations increased dramatically from net a balance score of 38 to 64. Tenant demand in the country also increased.
Solid growth in Asia, Latin America and parts of Eastern Europe is providing significant support for the real estate sector. Indeed, a key reason for central banks raising interest rates in these parts of the world is to head off concerns over the re-emergence of another asset price bubble, said Simon Rubinsohn, RICS chief economist.
Elsewhere, as fiscal austerity stifles growth, sovereign debt concerns and high unemployment will continue to impact the market in Portugal and Spain. As a result, the commercial property story remains gloomy. In both countries, tenant demand and rental expectations continued to fall sharply in the last three months of 2010 while capital value expectations remain negative.