The latest Netherlands market in minutes from international real estate advisor Savills notes that total investment volumes in the office, industrial and retail markets increased from €1.25 billion in H1 2013 to €3.08 billion in H1 2014, up 146.7%.
The latest Netherlands market in minutes from international real estate advisor Savills notes that total investment volumes in the office, industrial and retail markets increased from €1.25 billion in H1 2013 to €3.08 billion in H1 2014, up 146.7%.
The firm reports that whilst retail investment dominated in Q1 2014, the focus shifted to the office market in Q2 2014, which recorded transaction levels at €1.1 billion in that quarter. A breakdown of transactions in the office sector shows that Amsterdam remains the most appealing destination for investors, with approximately 40% of office transactions in Amsterdam South Axis, including the three largest single asset deals.
Savills finds that the retail investment market totalled €950 million in H1 2014 compared to €630 million in the full year 2013, however the firm warns that a lack of good quality stock may limit future investment totals. In contrast, the industrial market has seen speculative development begin, indicating strong confidence in this sector. H1 2014 totals reflect this buoyancy at €850 million compared to €300 million in H1 2013.
Clive Pritchard, investment director at Savills Netherlands, says: “Investor demand has been increasing substantially in the Dutch market over the past five quarters and is expected to remain high. It is mainly the lack of good quality product, as we have seen in the retail investment market, which may hold the investment volumes back.”
Savills states that take-up of offices, industrial and retail space reached 1.8 million sq m in H1 2014, which is 1.1% higher than in the same period last year. The office market saw the greatest demand across the three sectors with a 5.1% increase year on year from 495,000 sq m in H1 2013 to 520,000 sq m in H1 2014. Retail take-up also increased from 150,000 sq m in H1 2013 to 175,000 sq m in H1 2014. Whilst industrial occupier take-up fell slightly from 1.12 million sq m in H1 2013 to 1.10 million sq m in H1 2014.
Jeroen Jansen, head of research at Savills Netherlands, comments: “As the economy starts to grow again we are likely to see take-up across all sectors increase further. The pick up will be gradual and in both the office and retail markets this will not reduce vacancy, as companies remain focused on optimising their location strategies, in which both consolidation and reducing the square meter usage remain important parts.”