New Delhi: The global real estate investment market volumes for 2008 are expected to be down by over 30 percent as compared to 2007, a leading real estate consultant, Jones Lang LaSalle, has said in its latest report Thursday.

The Global Real Estate Capital Flow report suggests that the American and European investment markets will see a material decline in full year volumes and, although Asia may be more resilient, volumes will not achieve the heights of 2007.

The direct real estate investment globally was highest in 2007, estimated at $759 billion.

Tony Horrell, international director and head of European capital markets, said: "Reduced debt availability and investor confidence are likely to be here to stay for much of the first half of 2008 as the impact of the debt squeeze continues to ripple through markets."

"Factors that will constrain volumes this year include rising prices in many major markets, a misalignment between buyers' and sellers' price expectations, reduced availability of debt, tougher lending criteria and increased debt costs, reduced willingness and capacity to transact large lots sizes, a narrower spectrum of investors, and more exacting due diligence which leads to longer transaction processes," the report said.

Horrell said: "However, we do not expect a strategic and planned withdrawal of capital from real estate in 2008. The growing credibility of real estate as an investment asset, improving transparency, urbanization, and restricted supply will continue to be positive drivers."

Stuart Crow, head of Asia capital markets at Jones Lang LaSalle, said: "We are seeing a definite shift in the origin of active investors with those less reliant on debt funding. Instead, we are witnessing the re-emergence of Japanese interests in overseas investments, particularly in the developing markets of China, India and Vietnam."

"Overall, the real estate picture for Asia looks positive and global capital allocations continue to re-weigh in Asia's favour. We are likely to expect a rebound in investor confidence and transaction volumes to increase in the second half of 2008," said Crow.