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The level of distressed properties coming to the market will continue to grow globally amid a dramatic increase in investor appetite, according to the latest RICS Global Distressed Property Monitor.

Two thirds of the countries surveyed in the report, due to be released on Friday, anticipate a rise in forced selling of commercial buildings for the first quarter of 2012. Unsurprisingly, the number of commercial foreclosures is set to rise fastest in the euro area.

RICS Chief Economist Simon Rubinsohn said: 'The economic news flow remains mixed at best, and sentiment in the real estate sector is still fragile in much of the world as a consequence. In particular given the ongoing and intensifying problems in Europe, it is little surprise that respondents in many of these countries are more pessimistic. That said, the rise up in the number of countries reporting rising investor appetite for distressed assets maybe viewed as an indication that prices in the market place are getting closer to offering value.'

The countries at the epiccentre of the eurozone debt crisis are likely to be worst hit with the Republic of Ireland, Portugal, Spain and Italy expecting the highest number of foreclosures. In line with previous reports, the highly volatile economic and financial context has now also started to affect more stable markets with property professionals in France and Germany also anticipating more distressed selling in these countries.

The survey also highlights a sharp increase in worldwide demand for distressed properties. Over 80% of the countries surveyed reported rising levels of interest from specialist funds from October to December 2011. Investor demand rose at the fastest pace in Scandinavia, where 45% more respondents saw mounting interest. This was closely followed by Italy, France and Japan. Only China, Singapore and the Czech Republic reported falling investor appetite during the past three months.

More countries reported an expected fall in supply (up to seven from five during the 3rd quarter). However, a majority of respondents in Europe still expect supply to exceed demand. Here again, the Republic of Ireland and southern Europe are at the top of the rankings, closely followed by France and Hungary.