Most of the commercial real estate markets around the world remain robust despite recent economic difficulties. In the European region, good results were observed in Germany and France. Russia, Poland and the Czech Republic have shown promising results in the commercial sector, outlined in a global survey of commercial real estate RICS.

A large majority of study participants showed positive growth in the demand for rental and investment, as well as the development of new facilities in the second quarter of 2011. China and Hong Kong are still stars in the rental market and investment demand. Even more important, to them at the top of world rankings joined Russia, Poland and the Czech Republic.

Commercial real estate market in Russia has shown very good results, and the respondents reported a sharp increase in the segment of new objects in the second quarter and growing investment demand, which continues to grow over the already seven consecutive quarters.

According to RICS, Russia has witnessed a sharp growth in the segment of new objects in the second quarter 2011 (+11 to +44), which reflects the high demand for tenants, coupled with the lack of supply of good quality. This imbalance, in turn, led to a particularly positive attitude regarding the expected rents in the 3rd quarter of 2011, while economic growth this year is rapidly approaching the 5% figure. Meanwhile, expectations about the cost of capital remain very confident.

Members of RICS also reported increase in rental and investment demand in Poland, where the expected rental rate continues to rise, reflecting confidence in the market. Commercial real estate market in Germany continues to shine, though expectations for growth in the coming quarter were slightly more moderate. Rental demand remains positive throughout the second quarter of 2011, as a segment of new facilities. Investment demand also maintained a positive trend, but a little more moderate, as reflected in reduction from 60 to 36.

Despite this positive attitude, poor economic conditions continue to weigh down the commercial property market in several European countries. Expected rents and cost of capital remain negative in half the countries. As expected, analysts say, the results demonstrate a worsening of mood during the last three months of the countries on the outer rim of the euro area due to increasing concerns about the Greek default.

Republic of Ireland, Portugal and Spain continue to struggle with the current public debt crisis and weak economic growth, and this is very much reflected in their troubled commercial real estate markets. Unlike France, Germany and Russia, Greece, Ireland, Portugal and Spain, to some extent, are located in the lower rows of the rankings on most key indicators.