Commercial property deals across the world fell in value by 41% over the first two quarters of 2008, a new report from Jones Lang LaSalle (JLL) has revealed.

According to research compiled by the property firm, the total value of transactions completed over the six month period stood at around £115 billion, a significant slump on this time last year and equivalent to the level seen in the first half of 2005.

Specifically, the study found that, while the volume of sales was down by 38% across Europe, in the United States the decline has been more pronounced, with the total value of sales 61% down on the first six months of 2007.

Explaining the figures, Tony Horrell, head of JLL's European capital markets team said: "The fall in volumes was driven by global credit conditions which made debt both less available and more expensive.

"As a result, many purchasers are unwilling or unable to transact at prices seen in 2007, while vendors are unwilling to reduce expectations. This has caused a stand-off between buyers and sellers, particularly for large lot sizes."

At the same time, a separate report from JLL has revealed that trading of hotel property has fallen by 76% over the past year as the service sector struggles in the wake of the credit crunch.