Debt financing will continue to be scarce for at least another year and a half, one of the world's largest real estate brokers and consultancies DTZ said in its report titled Money and Property 2008.

DTZ's conclusion draws on a Lenders Survey, which sees three in four respondents in Europe anticipating tightening lending terms and conditions. In addition, another 45 per cent of the respondents in Europe expecting a cut in typical loan-to-value ratios.

The conclusion is also explicit from the halving of the volume of direct real estate transactions in the first quarter of 2008, DTZ said in a statement on June 2008.

DTZ expects the volume of global real estate transactions market to dip 30 per cent on the year to $500 billion. This would represent a reversal from the upward trend in 2007, when the value of the real estate market reached $730 billion.

The value of the real estate capital market in 2007 rose 18 per cent on the year to $12 trillion.

DTZ, however, sounded upbeat about the Central and East European region and predicted growth for rental markets.

Furthermore, more than six in 10 respondents (62 per cent) in DTZ's Investor Intentions Survey said that they planned to raise spending on real estate in 2008. However, the bulk of investments are expected to be directed to the Asia Pacific region and China, in particular.