Real Estate Investor Magazine South Africa June 2014 | Page 50

INDICATORS

BY ZOÉ HOLDER

Commercial Property Monitor
A look at international commercial real estate

T

he Q1 2014 Royal Institution of Chartered
Sur veyor s (R ICS) G lobal Commercial
Property Monitor shows, on balance, a
pickup in commercial real estate sentiment across
the globe, even if certain regions struggle against
a more challenging macro backdrop. RICS’ Global
Commercial Property Monitor is a quarterly
guide to the trends in the commercial property
investment and occupier markets.
The UAE and Japan are once again amongst the front
runners, as momentum continues to build at a healthy
rate. Indeed, the Occupier Sentiment Index (OSI) and
Investment Sentiment Index (ISI) stand above 40 and
50 respectively, for these two nations.
RICS Occupier Sentiment Index (OSI) is constructed
by taking an unweighted average of readings for three
series relating to the occupier market measured on
a net balance basis; occupier demand, the level of
inducements and rent expectations.

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June 2014 SA Real Estate Investor

R ICS Invest ment S ent iment Inde x ( ISI) is
constructed by taking an unweighted average of
readings for three series relating to the investment
market measured on a net balance basis; investment
enquiries, capital value expectations and the supply
of distressed properties
Furthermore, the longer term outlook is suitably
bright for both occupier and investment markets,
evidenced by the Monitor’s 12 month indicators,
with healthy rental and capital value gains expected
during the course of 2014.
Upbeat resu lts were a lso ret u rned from
cont r ibutors f rom t he US, New Z ea la nd a nd
Singapore real estate markets, with both the OSI
and ISI read ings st i l l comfor tably sig na l l ing
improvement. The robust f igures are indicative
of g row ing conf idence, which has been fa irly
c o n s i s t e nt t h r o u g h o ut t h e l a s t f e w G l o b a l
Commercial Property Monitors.
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