Pandemic takes toll on regional commercial property market as sentiment slips – ZAWYA

Pandemic takes toll on regional commercial property market as sentiment slips – ZAWYA

Sentiment towards global real estate has fallen emphatically among both investors and occupiers following the spread of COVID-19, according to the Q1 2020 RICS Global Commercial Property Monitor.. Confidence among occupiers has deteriorated in the last three months in 33 of the 34 countries surveyed, with the same proportion also now showing negative readings.. RICS' Occupier Sentiment Index (OSI), a gauge of sentiment amongst occupiers, has slipped to -61 this quarter in the UAE from -41 in Q4 2019, which is the weakest reading since 2010, indicating to a further deterioration in occupier demand.. Respondents in the country noted a sharp reduction in both domestic and international investor enquiries over the quarter.. Looking at the expectations for the next twelve months, in the case of rental values, UAE expects a decline of 5% in headline rents, with secondary retail rents expected to see the sharpest decline.. What's even more worrying for investors and occupiers alike is that the full extent of the toll it will take on businesses and the underlying economy is still unclear.. The contents of the press release was provided from an external third party provider.. Neither this website nor our affiliates guarantee the accuracy