Jones Lang LaSalle CEO sees no pickup in near term

PARIS, July 22 (Reuters) - The head of U.S. property services company Jones Lang LaSalle Inc (JLL.N) said on Tuesday that he did not expect property markets to recover from the global credit crunch until 12 to 18 months' time.

"We are not banking on a short-term rebound. We think that business will remain calm for the next 12 to 18 months, just as we are experiencing at the moment," Jones Lang LaSalle Chief Executive Colin Dyer told reporters in Paris.

"We think that confidence will only return in mid-2009 at the earliest."

The U.S. property sector has suffered a sharp slowdown following losses related to subprime mortgages. The Office of Federal Housing Enterprise Oversight said on Tuesday that U.S home prices continued to fall in May.

Subprime mortgages are loans to consumers with a poor credit history.

Many U.S. mortgage holders on low incomes have been unable to meet their loan repayments, causing their homes to be repossessed and the banks to write off the subprime loans.

Dyer said the current property slump was different from the one of the early 1990s and demand for office space remained relatively resilient.

"Demand in this sector has been maintained. This is a fundamental positive for the property market," he said.

Dyer also said certain investors were still buying up assets and added that Jones Lang LaSalle itself was currently looking to invest $15 billion of assets it manages, chiefly in the Far East real estate sector.

Last month, Jones Lang LaSalle agreed to buy smaller rival Staubach Co. for around $613 million to bolster its presence in U.S. markets.

In April, the company reported a plunge in its first-quarter earnings. (Editing by Paul Bolding)