LONDON-A slowdown in the growth in the industrial sector in emerging markets in Asia and Europe is a major factor in an overall downturn in global investment, reveals a new report from the Royal Institute of Chartered Surveyors. According to the RICS Global Commercial Property Survey, released May 29, sales transactions fell in emerging markets across Europe, Asia and Latin America, as investors reassessed their appetite for risk amidst a struggle to overcome financial liquidity constraints.

The survey indicates the picture also remains negative for most developed markets. It projects a worldwide decline in capital values for all types of real estate, though it says the rate of decline in Western Europe will be only half that of North America Asia and the Australia-Pacific region. The underlying cause was the Q1 reversal of growth in tenant demand, the first time demand turned negative in in over four years. Only Australia and Latin America recorded overall occupancy gains.

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