LONDON-Interest in distressed property is rising dramatically worldwide, especially in Ireland, the US and Spain, says a new report by the UK-based Royal Institution of Chartered Surveyors. In the third quarter, only Russia saw an easing in specialist interest in distressed assets.

In its Global Distressed Property Monitor, RICS reports that 20 countries experienced increased interest in distressed properties in the third quarter, compared to 11 in Q2. While overall, distressed listings fell or grew at a slower pace across most markets in the third quarter, with the exception of New Zealand, Italy, Spain, the UAE and Czech Republic, respondents expect distressed properties coming onto the market in Q4 to increase across 16 of 25 countries surveyed – a rise of two countries since the second quarter.

Professionals expect Ireland, the US, UK, Spain, Portugal and Hungary to show the biggest increases. “With the commercial property recovery faltering across several countries there is expectation that banks might be becoming less lenient in extending terms for real estate loans,” RICS Senior Economist Oliver Gilmartin said.