Global investment transactions are expected to fall 30 percent this year, according to a report out today.
‘Money into Property’ by real estate services firm DTZ, shows transaction volumes crashed 50 percent in the first quarter of the year compared to the same period in 2007.
Paul Sanderson, EMEA research director, said the fall reflected weakness over the first half of 2008 and a relatively modest pick-up likely to be driven principally by the Asia Pacific market.
DTZ believes that the worst of the first phase of the sub-prime may be over, but that the credit crunch proper will continue well into 2009. This is backed up by the results of the DTZ Lenders Survey which reveals that 75 percent of respondents in the European market anticipate tightening lending terms and conditions.
The firm highlights the London city office market as “vulnerable” with rents anticipated to decline by 25 percent over 2008 and 2009 as a whole.