According to a report published by Jones Lang LaSalle, Incorporated (JLL), a leading full-service real estate firm, direct investments in commercial real estate (CRE) in Europe declined by 42% in the first half of 2009, compared to the last six months of 2008.
 
Jones Lang LaSalle provides corporate, financial and investment management services to corporations and other real estate owners, users as well as investors worldwide. The company has a broad real estate product and service range and an extensive knowledge of domestic and international real estate markets. The company has approximately 180 offices worldwide serving clients in about 60 countries.
 
The current problems in the credit markets will continue to have a negative effect on real estate prices in the US and Europe. Overall real estate fundamentals are worsening across most property types in the US, Europe and Asia. Europe has been especially hard hit. Transaction volumes have waned due to lack of financing and high bid-ask spreads between buyers and sellers.
 
The recent findings of Jones Lang LaSalle reveal that investment sales during the period of January-June 2009 decreased by $33 billion (€24 billion) with most buyers being dissuaded by inadequate bank lending. However, the management of the company believes that the European market has probably reached its nadir and would make a rebound in the latter half of the year.
 
We expect 2009 to be a much more difficult year for real estate firms. However, with a strong balance sheet, Jones Lang LaSalle is still the best positioned real estate services company. We maintain our Hold rating of the company based on valuation and its long-term outlook.
Read the full analyst report on “JLL”
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