Country Report Netherlands Q3-2021
“The focus is clearly on housing!”

Dear readers,

“The mood on the Dutch real estate market is generally upbeat, and the year is not even over yet. A large number of deals are in the pipeline, with the focus clearly being placed on housing. However, there is simply a lack of suitable opportunities in this sector, because not enough homes are being built. In some cases, it can take as long as eight years from concept to completion. Demand for office real estate in good locations remains very high. Although working from home has become a fixture of the business world, social contact is essential. This means it is only a matter of time before demand for office properties picks up again. The situation is similar in the retail sector, where investor interest in prime locations is growing. Repurposing and mixed use are commonplace in city centres, leading to dramatic changes – ideally in favour of housing. The boom in logistics real estate is continuing, driven mainly by interest from international investors. 2022 is eagerly anticipated due to hopes that, as vaccination rates rise, international tourists and trade fairs will return and therefore contribute to a recovery of the hotel real estate market.” 


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

REECOX Netherlands remains just above the 200 mark

In the third quarter, the performance of the Dutch Real Estate Economy Index tracked that of the declining REECOX Germany. Compared with the summer months, the REECOX Netherlands fell slightly by 0.5 % to its most recent level of 203.3 points. A slender gain of 0.6 % in July was followed by a negative trend in August (-0.5 %) and September (-0.6 %).

Real estate shares run counter to general trend

Some input variables trended against the equity market as a whole. In the third quarter, the blue-chip index AEX continued the positive trajectory it had shown since the beginning of the year, closing at 771.9 points. This corresponds to an increase of 5.8 % compared to the previous quarter. However, this generally positive mood on the equity market was not reflected in the performance of real estate shares. After three positive quarters, the FTSE EPRA/NAREIT Netherlands real estate share index slumped by 12.1 % to 424.6 points. This downturn is attributable in particular to the drop in share prices of 13.4 % in September. The business climate in the Netherlands was also unable to maintain its extremely positive development in the previous quarter, falling by 2.4 % overall to 111.0 points.

Synopsis of Input Variables and Real Estate Economic Situations Q3-2021

Country

Stock Index

Real Estate Economy Index

Economic Indicator

Base Interest Rate

Interest Rate 10-Year Government Bonds

Q2-2107/2108/21Q3-21Delta (%)
Q2-21 / Q3-21
DE
do
do
eq
eq
eq
356.4
360.1
361.7
354.5
-0.5
GB
eq
up
up
eq
eq
219.9
222.8
222.9
222.9
1.4
PL
up
up
do
eq
up
197.8
198.1
198.7
198.5
0.4
NL
up
do
do
eq
do
204.3
205.5
204.6
203.3
-0.5
FR
eq
do
eq
eq
do
245.0
250.5
247.7
243.4
-0.7
ES
eq
eq
up
eq
do
183.4
184.9
184.7
186.0
1.4