Disposals of real estate by sellers in distress are expected to increase in Germany this year and commercial property prices could fall by as much as 15 percent, according to two reports released on Wednesday.

German property prices are expected to fall less, however, than in more volatile markets such as Britain, Spain or Ireland, accountancy firm Ernst & Young (E&Y) said in its annual survey of real estate companies, funds and banks active in Germany.

Property consultancy Jones Lang LaSalle (JLL) said it expects German office property prices to fall by up to 15 percent this year.

Yields, which move in the opposite direction to prices, for office properties in Germany's top six cities widened by 85 basis points last year, corresponding to a price fall of 16 percent, JLL said.

"In this difficult and uncertain market phase potential sellers are sitting on their losses, potential buyers are waiting and speculating about a further fall in prices," said Markus Lemli, head of capital markets at JLL in Germany.

The value of transactions in German commercial properties would be "slightly below" the 2008 level of 19.7 billion euros ($26.1 billion), Lemli said in the report.

E&Y estimated that the value of transactions in German real estate -- commercial and residential -- would drop by as much as 23 percent, primarily due to difficulties in obtaining deal financing, to between 20 billion and 24 billion euros from 25.9 billion euros last year and a record 65.3 billion euros in 2007.

Source: http://uk.reuters.com/