Financial uncertainty is stymieing demand for offices but Japan, China and Brazil buck the trend
The global commercial property development market has taken a downturn in the last quarter, figures from the RICS show.
The RICS report for the third quarter of 2011 shows demand for tenancies fell in over half the countries surveyed, while available space rose.
The countries with the highest number of development starts were Brazil and Malaysia, but the number of starts in the UK fell in comparison with the second quarter.
However, Japan saw a turn around with a rise in development starts from a score of -11 to +10. Plus there were rises in investment enquiries and demand for tenancies.
China Brazil and Russia were the countries with the highest level of tenant demand, though this was down from the second quarter.
Simon Rubinsohn, RICS chief economist , said: “At the moment we are dealing not only with considerable levels of uncertainty in financial markets around the world, but also an intensification of the euro area crisis and the threat of a recession in the US. Confidence has definitely taken a knock.”
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