Insights & research
Real Estate Market Outlook 2022
In our Real Estate Market Outlook report 2022 we reflect on opportunities and challenges in Real Estate Investment market.
Review of 2021
Investments were down significantly in 2021 from the previous four years: €17.3 billion. Following an increase in property transfer tax in the Netherlands, many transactions were moved from the first two quarters to 2020. One major exception is the logistics market, which experienced another bumper year. Despite the lower investment volumes, average initial yields continued to decline.
Evolving citiesVarious developments – accelerated by the coronavirus pandemic – are changing the way we live, work and recreate in our cities. The hybrid workplace, online shopping, a greater focus on affordable, high-quality living, a trend of more environmentally aware recreation in our city centers: the new reality has changed requirements for both urban living and for the property market. These are all determining factors in the strategies of governments, as well as property investors and owners.
Highlights per sector
Many people come to the city to socialize, and shops, food service outlets, cinemas, theatres and concert venues are all jockeying for the best spots in city centers. Many of them are struggling with ongoing social-distancing requirements and travel restrictions, as well as trends such as online shopping and the growing importance of online influencers. Investors and owners can make a difference by focusing on the quality of the real estate, as well as on its value as a public resource.
While cities are not likely to lose their appeal to the working population anytime soon, the current tight labour market is compelling people to take action. In order to compete in the war for talent, employers need to ensure that workplaces are at least comfortable and sustainable. The quality of the office, data center or distribution center is vital, but this also applies to the range of facilities and meeting places in the area. This creates opportunities for investors, developers and owners alike.
During the Covid-19 pandemic, we are finding that our cities fail to meet the needs of many of their residents, making them suboptimal as living environments. They fall short in many areas, particularly when it comes to affordability and quality of life, most notably for families and senior citizens. Investors, property developers and owners can all contribute to building a sufficient number of affordable homes (including homes for seniors), adding more green spaces, ‘safe havens’ and state-of-the-art mobility solutions, including through new development projects and ESG criteria.