According to Savills research report 'City Special Eindhoven - The region as the ultimate growth solution’, the real estate market in Eindhoven is benefitting from the Brainport-region’s success. Increasing interest is yet to lead to significant investment volumes. This can be explained by the fact that Eindhoven is a relatively unknown territory for (international) investors and their demand for high-quality office space close to public-transport hubs. The wider region has several stations, which could help facilitate further growth.

KEY FINDINGS

• The economic growth of Brainport Eindhoven has exceeded the national average since 2013. In 2018 it was 3.3 per cent, compared with 2.6% for the Netherlands as a whole.

• As well as city-centre residential developments, such as Knoop XL, more housing in neighbouring municipalities is also needed in order to facilitate predicted population growth of 9.06 per cent between now and 2040.

• Due to the growth outlined in this report, the office market in the region is performing well. Vacancy rates in the city (8.4 per cent) and the region (9.3 per cent) have now fallen below the national average.

• The current office stock in Eindhoven does pose challenges, however. This is because it is relatively old, both economically and technically, compared with the other G5 cities.

• Despite this, take up by volume has increased enough in recent years that a shortage is beginning to occur, especially in central Eindhoven (vacancy rate 5.6 per cent).

• The wider region has benefited substantially from the upturn of the past five years. Take up of office space by volume in the neighbouring municipalities has increased by no less than 216 per cent.

• Not only is overall investment increasing, but so too is the share accounted for by foreign capital. To date, 2019 has been the first year ever in which overseas investments in Eindhoven have exceeded domestic ones (58.2 per cent).

• Two-thirds of the capital invested in the past two years has gone into buildings within walking distance of Eindhoven Central Station.

• Within the investment market, the ripple effect is still limited. Further capital injections into buildings and localities are needed to further stimulate this. Government has an essential role to play here, in particular by investing in mobility.

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