Increasing appetite for Dutch real estate
The Netherlands was one of the best performing European investment markets in 2017 with a record investment volume of more than € 19.5 billion. And with a strongly performing economy and expanding occupier markets, the prospects for 2018 are sound. Investors’ risk appetite will increase in the year to come, putting more unconventional locations and investment classes more firmly on the radar.
In 2017, 70% of all purchases were made by foreign investors and 30% of all transactions were between foreign investors. This illustrates how Dutch real estate is now being traded in a global marketplace, by international players.
An analysis of the previous cyclical upturn (2005-2007) and the last three years of the current upturn (2015-2017) shows a strong internalisation of ownership. The previous upturn was characterised by a wave of German funds that became quite dominant in the office market, buying many (mainly secondary) properties at relatively high prices. And whereas Dutch investors were dominant in the previous upturn, they have become a minority in the current one.
The extent of internationalisation varies greatly between asset classes. Dutch office and logistical assets were already popular among foreign investors in the previous upturn, representing approximately half of investment volume, but during the current upturn, this share has increased to 71% and 78%, respectively. By contrast, residential and retail properties were bought almost exclusively by Dutch investors during the previous upturn. But here again, foreign activity has now increased – to 29% and 59% respectively.
Investment outlook per sector
Learn more about the developments in the different sectors