According to the latest Royal Institute of Chartered Surveyors (RICS) Global Property Survey, the mood amongst real estate investors has picked up with capital values expected to increase in several countries including Brazil, Hong Kong, South Korea, China and India.

Tenant demand in particular is looking less negative than previously throughout the world, up until the end of the year, with Latin American and Asian countries having favourable readings for the rental outlook. In Hong Kong for example during Q2, 67% of those surveyed expected rents to decrease, however in Q3 a net balance of 16% expect rents to increase by the end of 2009.

Simon Rubinsohn, RICS chief economist, said: “The rebound in Asian economies is clearly being reflected in the more positive responses to both rental and capital value expectations throughout the region. By way of contrast, the relatively sluggish economic revival though much of Europe and the US is consistent with the more downbeat results for these regions.

“This contrast could become even more pronounced through 2010 as any unwinding of the monetary and fiscal stimulus presents a further challenge to the tentative recoveries being experienced in most western economies.’’