Country Report Netherlands Q1-2021
“Investors continue to focus on the residential market and logistics properties.”

Dear readers,

“Unfortunately, the situation regarding the coronavirus pandemic remained serious in the Netherlands in the first quarter of 2021. B and C retail locations came under pressure once again due to the ongoing closures. Hotel investments also had to contend with further reductions in market values. Investors continue to focus on the residential market and logistics properties, both of which remained the undisputed favourites. The situation is mixed bag in the office sector. There are many different opinions regarding demand for and configuration of office space. Working from home has definitely established itself as a firm fixture in the world of employment. Many employees no longer have their long daily commutes, and the quality of work has not declined. Activity in the commercial real estate sector has been brisk since the spring. Many projects are currently being planned, and demand for financing is high. Nevertheless, it is still difficult to predict where we will stand at the end of the current year. The future of the industry depends on how quickly and sustainably the economy recovers and restrictions are eased in May.”


Your Wouter de Bever

Contact

Mr Wouter de Bever
Managing Director Netherlands

Phone: +31 20 691 45 51
E-mail: Wouter.de.Bever@Deutsche-Hypo.de

Dutch real estate market activity makes successful start to 2021

The positive performance of Dutch real estate market activity at the end of the year continued into the first quarter of 2021. Growth was reported in January (+1.6 %) and March (+3.8 %), with February proving to be the sole exception (-0.1 %) to the positive trend. At the end of the first quarter, REECOX Netherlands stood at 188.2 points, a 5.4 % increase on the previous quarter.

Leading share index AEX once again with double-digit growth

Input variables are positive across the board: 

The recovery of the leading share index AEX was once again significant, rising by 12.0 % to 699.8 points. Activity on the FTSE EPRA/NAREIT Netherlands real estate share index was a little less dynamic. After recording enormous growth of 81.9 % at the end of the year, the upswing in the first quarter of 2021 was significantly more reserved. An increase of 7.0 % in January was followed by an 8.7 % decline in February. March brought renewed growth of 10.5 %, meaning that the index recorded quarter-on-quarter gains of 8.0 %. The Dutch business climate continued to climb steeply at the start of the year, with the exception of a short interlude in February. Overall, the indicator increased by 5.0 % to its current level of 97.9 points.

Synopsis of Input Variables and Real Estate Economic Situations Q1-2021

Country

Stock Index

Real Estate Economy Index

Economic Indicator

Base Interest Rate

Interest Rate 10-Year Government Bonds

Q4-2001/2102/21Q1-21Delta (%)
Q4-20 / Q1-21
DE
upup
do
upup
eq
up
311.0
303.1
309.4
328.9
5.8
GB
up
up
upup
eq
upup
185.3
184.0
188.8
203.0
9.6
PL
do
up
upup
eq
upup
172.7
174.9
178.4
181.7
5.2
NL
upup
up
upup
eq
up
178.5
181.4
181.2
188.2
5.4
FR
upup
eq
upup
eq
upup
219.8
219.0
223.0
229.0
4.2
ES
up
up
upup
eq
upup
169.6
171.4
170.6
175.1
3.2