Real estate investors may be able to obtain a better relative yield in Amsterdam than German metropolitan areas which have similar economic growth expectations, attendees at PropertyEU's latest Netherlands Investment Briefing heard.
Real estate investors may be able to obtain a better relative yield in Amsterdam than German metropolitan areas which have similar economic growth expectations, attendees at PropertyEU's latest Netherlands Investment Briefing heard.
The Dutch capital is in the 'chasing pack´, along with Frankfurt and Munich, in Oxford Economics´ league table of expected growth rates for European cities between 2014 and 2018.
The leading performers are Warsaw, London, Stockholm and Dublin. See slide 1 for more detail.
The forecast implies an economic growth rate of around 1.5% per annum for Amsterdam and the German cities, Sabina Kalyan, global chief economist & head of European research said.
'Basically the economic fundamentals are the same and that leads me to ask what my relative yields will be as a real estate investor in these markets. If I look at an ingoing yield in the Netherlands and one for these German cities there is quite some difference so maybe I would prefer to be in the Netherlands.'
But Kalyan noted that viewed at country level, the Netherlands as a whole could only expect 'a consumer spending and government spending-driven recovery', with growth of about 1.5%, by 2018. Until then the public sector in the Netherland will be a drag on growth due to austerity measures enacted by the government. Household spending is forecast to remain negative in terms of GDP growth until 2015. See slide 2 and Slide 3
The Netherlands Investment Briefing was hosted by CBRE Global Investors in London on 21 May.
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