The Dutch investment market 19 September 2018
Strong investor demand • 2017 was an absolute record-breaking year in regard to the investment market, with a strong second half of the year. • Expectation is that 2018 will match the investment volume of 2017. An important driver of the total investment volume is the residential sector as many large portfolios are being sold, for example Vesteda purchasing a portfolio of € 1.5bn. • The commercial markets are expected to show slightly higher volumes compared to 2018 H1. Savills 6
Majority of investment volume comes from cross-border investors • The majority of the investment volume in the Netherlands comes from cross- border investors. • In 2018 H1, the share of foreign capital invested in Dutch real estate was 60%. Mainly the United States, United Kingdom and Germany invest in the Netherlands. • However, capital from Asia and especially from the Middle-East is on the rise. Savills 7
The situation in August by sector • The office market, which had for many years seen the largest share of the total investment volume in Dutch real estate, has been surpassed by the residential market in 2018. • Prime yields have been compressed significantly in 2017 and 2018 which can be interpreted as a price correction for Dutch real estate in comparison to other mature economies such as the UK and Germany. • The graph shows the current prime yield for each real estate market. Savills 8
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