Country Report Netherlands Q2-2022
Investments in retail properties have more than tripled year on year.”

Dear readers,

The real estate market in the Netherlands is relatively stable, yetstill heavily impacted by the current uncertainty. The high cost of materials is leading many investors to adopt a wait-and-see approach regarding future developments. As a result, construction activity in Amsterdam is currently at a low level for both residential and office properties. As in the previous year, logistics is the most successful asset class – driven mostly by the boom in the online retail sector. The vacancy rate for logistics properties is at a historically low level of 3 %. The significant rise in demand in the retail sector is striking: in the first quarter of 2022, investments in retail properties have more than tripled year on year, growing from EUR 108 to EUR 369 million. Local shopping centres especially are very popular. A recovery is likewise emerging in the hotel market segment. Whereas holidays in rural areas were in demand over the past two years due to the coronavirus pandemic, large cities are now becoming increasingly popular. Occupancy rates have returned to pre-coronavirus levels. The extent to which this development will also be reflected in the hotel investment market remains to be seen. Generally, there is hope that the Dutch real estate market will be re-energised over the calm summer months in order to rebound as autumn approaches.


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 under the 200-point mark

REECOX Netherlands continues to record a negative performance. A moderate decline in April (-0.6 %) and a further drop in May (-1.1 %) were followed by a comparatively sharp downturn of 3.8 % in June to stand at 184.8 points. This means that the Dutch real estate index continued to hover below the 200-point mark as the second quarter drew to a close.

FTSE EPRA/NAREIT Netherlands real estate share index plummets

With a quarter-on-quarter slump of 9.0 % to 659.2 points, the AEX 25 leading share index was again faced with substantial losses. The FTSE EPRA/NAREIT Netherlands real estate share index was hit even harder: it plunged in the second quarter, knocking around 25.3 % off its value. This was mainly triggered by a slump in share prices in June (-21.6 %). By the end of June, it stood at a mere 358.4 points. Moreover, the downward spiral in business confidence as reported by the Economic Sentiment Indicator (ESI) continued in the second quarter of 2022, resulting in a 4.7 % quarter-on-quarter decline to 99.3 points.

Synopsis of Input Variables and Real Estate Economic Situations Q2-2022

Country

Stock Index

Real Estate Economy Index

Economic Indicator

Base Interest Rate

Interest Rate 10-Year Government Bonds

Q1-2204/2205/22Q2-22Delta (%)
Q1-22 / Q2-22
DE
dodo
dodo
dodo
eq
upup
320.6
310.1
308.5
289.8
-9.6
GB
do
dodo
dodo
upup
upup
218.2
205.6
203.4
202.5
-7.2
PL
dodo
do
do
upup
upup
189.5
187.5
185.3
183.1
-3.4
NL
dodo
dodo
dodo
eq
upup
194.6
194.2
192.2
184.8
-5.0
FR
dodo
dodo
do
eq
upup
240.0
234.8
233.6
225.6
-6.0
ES
do
dodo
do
eq
upup
181.6
178.2
181.3
178.4
-1.7