Real Estate Outlook: Investment Update

Due to the corona virus, expectations for the real estate market have been adjusted. What effects do we see in the Dutch real estate market, the investment market and within all real estate sectors? Our experts share the latest insights on this page.

Recovery to start in third quarter

Covid-19 and the government measures imposed to prevent the spread of the coronavirus are having an unprecedented impact on the economy. Unemployment is on the rise and consumer confidence is falling. The general economic downturn is clearly forthcoming, and the real estate sector is likely to experience the consequences, although some real estate sectors are being hit harder than others. The most significant downturn can be seen in the market for hotel and retail properties, whereas investment activity in the residential market remains relatively high. .

Despite the strong impact that the coronavirus crisis is currently having on real estate investments, we expect to see the sector recover relatively quickly. The most significant downturn will be seen in the second quarter, but we expect to see the first signs of recovery in the third and fourth quarters. If we succeed to control the coronavirus, the recovery is likely to proceed in 2021.

In order to withstand the current circumstances, the various players in the market will need to adopt a flexible approach to their clients and other business relations. By focusing on long-term collaboration and partnerships, the market will be able to recover more effectively from the crisis.

Updates Real Estate and Covid-19

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In the articles below we outline what we expect to see in the real estate market in the upcoming period and explain more about the impact of Covid-19 on the economy, the investment market, the financing market and the various real estate sectors. Our experts are keeping the content up to date, based on the latest developments, insights and figures.

Economy: faster action now than in 2008

According to the CBRE House View, the economy of Western Europe will shrink by at least 5% in 2020. Q1 was a weak quarter, but Q2 is set to be even worse.

Investment market: major price difference between buyers and sellers

The Dutch investment volume in April fell by 39% compared to the same period last year.

Real estate finance market: reducing risks

After an initial pause, most lenders have resumed business. Nevertheless, they are clearly in the process of reducing their risks, focusing on more conservative financing and lending structures.

Healthcare real estate: demand persists

In recent weeks, the need to have good accommodation for our healthcare has become increasingly evident. Healthcare institutions themselves have focused on organizing effective care and largely postponed any real estate decisions.

Hotels: most visible impact from Covid-19

The consequences of Covid-19 have been felt the most in the hotel sector. The final quarter of 2019 was excellent, but investment volumes proved disappointing in Q1.

Retail real estate: trends accelerated

There will be a new balance between online and offline purchases, and the amount of retail space will be adjusted downwards accordingly.

Office real estate: better placed now than in the credit crisis

The first quarter saw a decline in activity in the user market, primarily as a result of a lack in good-quality office space available.

Residential market: demand undiminished

In the first four months of 2020, the residential sector was again the largest sector at € 2 billion despite a 35% decline compared to the same period in 2019.