Global transaction volume was down around 28% over the year,cutting across most property types and markets, particularly inEMEA and Asia Pacific. However, the US and Hong Kong posted stronggains. Cross-border investment also increased. In terms of topmarkets, London, Tokyo, New York, Hong Kong and Paris ranked amongthe top five.

Debt financing is expected to be more constrained, particularlyin Europe, as banks continue to pick their spots carefully. Lendersare pulling back as pressure mounts from maturing real estate loansand banks are forced to hold more capital against those loans.Given the amount of troubled loans, some of the biggest sellers in2012 could be the banks.

All eyes are on Europe. When the euro began in 1999, memberstates were supposed to ensure that debt did not exceed 60% oftheir GDP. Yet 14 out of 27 countries in the European Union hadpublic debt exceeding 60%; at the top is Greece. Spain, Portugal,Italy, Ireland and Greece relied on banks in countries withstronger economies to finance their budget deficits for a long timeand now some of these countries are beginning to have problems oftheir own. European Central Bank encouraged banks to buy the debt;banks borrowed over $1 trillion between Dec. 21, 2011 and Feb. 29,2012. Now the challenge will be to implement needed austeritymeasures in the wake of little or no growth. The IMF, which expectsthe Eurozone to contract, said if Europe doesn't get its acttogether, it could shave 2% off global growth.