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Activity slows as polarisation grows in the Dutch real estate market

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Read the latest developments in the Dutch real estate market below

The new ‘Market in Minutes – The Netherlands’ report by Savills sheds light on three notable trends in the Dutch real estate market in 2023. The report highlights the impact of higher interest rate costs on investment, the robustness of the industrial and logistics sectors, and the ongoing polarisation in office demand.

Key findings:

  1. Sharp drop in investment volumes due to multiple interest rate hikes from the ECB, with the lowest volume the first half of the year since 2013.
  2. Industrial and logistics sectors robust despite the economic downturn.
  3. A continuing polarisation in office demand.
  4. Demand for quality is reflected in take-up figures for more energy-efficient offices, with over 65% of leased space having an EPC rating of A or above.
  5. Vacancy rates for higher quality offices decreased, while the vacancy rate for offices in general increased.

The Dutch real estate market is experiencing a slowdown in activity, largely driven by interest rate policies and the current economic climate. While overall investment volumes have seen a significant decline, the industrial and logistics sectors have demonstrated resilience due to strong supply-demand fundamentals. In contrast, the office market is experiencing bifurcation, with a clear preference for high-quality space in core locations.

Clive Pritchard, Head of Country at Savills in the Netherlands.