Brazilian commercial property 'performing well'

Brazil has been highlighted as one of the top performing commercial real estate markets in the world at present in a new study.

The Royal Institution of Chartered Surveyors (Rics) Global Commercial Property Survey for the third quarter of 2011 predicted that Brazil's momentum will continue throughout the final quarter of this year.

According to the organisation, "rental and capital value expectations remain high", while the picture for demand from investors looks strong, despite weakening slightly compared to the second quarter of 2011.

Rics chief economist Simon Rubinsohn described Brazil's commercial property sector as one of the "key areas of resilience" around the world, alongside the likes of China and Russia.

Meanwhile, those questioned for the research anticipate continued strength in occupier demand, with Rics stating that recent reductions in interest rates by the Banco Central do Brasil will further support this side of the market.

Last month, Ruban Selvanayagam wrote for Global Property Guide that new regulations have been introduced in Brazil to help resolve issues caused by delays to developments when residential units have been sold off-plan.

He noted that the intention of the guidelines, which are not compulsory, is to bring greater transparency into the sector.