Property clock chimes six for Europe

Investors in Asia and the Pacific expect a return to normal by the fourth quarter of 2010, followed by those in Canada, Latin America, Eastern Europe and Western Europe by the first quarter of 2011, and the United States in the second quarter of 2011.

Another important conclusion to be drawn from the survey is the perception of how the market has changed structurally.

Mark Charlton, Head of Research and Forecasting at Colliers CRE, said:

"Many investors expressed the view that real estate cycles are now shorter and more severe than historical norms, which serves as a warning to others that going forward, market participants will need to be more nimble. Access to current and insightful analysis will be more important than ever."

Additional findings from the survey:

Many investors viewed the events of the last two years as a good reminder that commercial real estate is highly cyclical and timing is critical to making profits.

Globally, rents are anticipated to hit bottom this year – the first quarter of 2010 for the office sector was the most frequent response, followed by the second quarter of 2010 for industrial, and the third or fourth quarter 2010 for retail.

There appears to be a genuine feeling that despite a challenging economic backdrop, particularly in the United States and certain European countries, real estate prices today represent good value, and many are willing to look past what could be a difficult period in terms of rents and vacancies and to better times down the road.

source : Colliers