Over 75% of countries surveyed by RICS have seen a rise in distressed sales in the commercial property market.

During the second quarter of 2009, RICS surveyed members and other real estate executives in 27 countries across the globe to ascertain the volume of distressed sales in the commercial property market. Respondents in 75% of the countries surveyed reported an increase in distressed sales compared to three months earlier. The biggest pick up in distressed sales was reported in South Africa, followed by the US, New Zealand, Malaysia and Hungary with the Caribbean, Ireland, Spain, Russia and the Ukraine making up the remainder of the top ten.

RICS members work on both sides of any distressed property transaction. Consequently, the survey asked surveyors whether the level of interest from specialist funds in distressed properties was increasing. Unsurprisingly, the majority of agents are reporting a rise in specialist funds expressing interest in distressed commercial properties. Those markets at the forefront include Italy and the UK, with Germany, US, Hungary, Spain and Ireland closely behind.

RICS says that an “obvious”” reason for current interest must undoubtedly be the scale of property price declines which have occurred in some of these markets since the onset of the credit crunch drawing bargain hunters in. Furthermore property yields