The Dutch real estate market will see growing investor demand in 2015 following a strong 12 months last year during which investment virtually doubled, according to adviser Savills.
The Dutch real estate market will see growing investor demand in 2015 following a strong 12 months last year during which investment virtually doubled, according to adviser Savills.
Last year, €6.7 bn of property changed hands in the Netherlands with two-thirds of buyers originating from abroad, Savills data shows. This compares with investment turnover of €3.4 bn in 2013.
Foreign investor appetite is expected to be robust again in 2015, with more activity from Asia following the recent purchase by Singapore’s First Sponsor Group of an office building in Amsterdam. Coupled with activity triggered by the ECB’s quantative easing programme, Savills predicts yields will be driven downwards by 20-40 basis points.
With yields in the Dutch market currently still above 2007 levels, unlike many other European markets, pricing is favourable for cross-border investors, Savills said. UK and US investors are focused in particular on lot sizes of over €200 mln, driving portfolio sales.
‘As investor appetite is only growing, the Dutch property market is up for another strong year,’ Clive Pritchard, head of Savills Netherlands, said.
Jeroen Jansen, head of research at Savills Netherlands, added: ‘With the ecommerce sector forcing the logistics market forwards, the Netherlands is strategically located to benefit from this increase in activity. The country’s overall employment rates look positive, when compared to other European countries, and this will see a positive impact on household consumption.’
