LONDON-Parallel to the economic recovery, investor sentiment in global real estate improved in first quarter, with Germany seeing the sharpest boost in Europe, according to the Royal Institution of Chartered Surveyors Global Commercial Property Survey. The second quarter harbors a positive outlook for the region, the organization says.

Investment in commercial property in Europe improved in 14 of the 19 markets monitored by the RICS, with more countries expecting a rise in rents and capital values than in previous quarters. Demand remained positive in Poland, Nordics, Russia and the Czech Republic. Rental expectations are conservative due to supply surpluses, with Russia the most optimistic market, while France is seeing a growth in occupier demand and rising rents.

Investment continues to fall in Ireland, Greece, Spain and Portugal, but investors may gain more risk appetite and turn to these markets as prices increase elsewhere. These countries’ real estate markets remain fragile and while second quarter rental and capital value expectations have improved, they remain negative, the report states. “Real estate in some countries still remains under considerable pressure, but elsewhere it is booming. This divergence between the leaders and laggards is something that we expect to persist for some while to come,” Simon Rubinsohn, RICS Chief Economist, said.