Country Report Netherlands Q2-2021
“Demand is slowly shifting from conventional office properties to larger meeting rooms and open-plan spaces.”

Dear readers,

“Right now we are seeing a tremendous boom in demand in residential construction, as in almost all major European cities. Laborious approval processes, new construction regulations and rising construction costs have led to a situation in which scant supply meets high demand, driving up prices significantly at still attractive initial yields for investors.  On the other hand, yields for logistics properties have fallen to a historically low level. Nevertheless, this asset class – like the office property market – remains in high demand. A new trend in relation to office space is emerging, however, as demand remains high but is slowly shifting from conventional office properties to larger meeting rooms and open-plan spaces. The hotel and retail property market is challenging and remains affected by the downturn, although cautious optimism surrounds the return of international tourists. Investors continue to focus on property in prime locations, but uncertainty clouds the future development of the retail sector. At the end of the day, bricks-and-mortar retail is an essential part of the retail landscape, and the right mix of high-street shops and e-commerce will prove decisive.”

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 back over the 200-point mark

The Dutch real estate market performed well throughout the second quarter. While April (+5.2 %) was able to build on the relatively strong performance at the end of the first quarter, growth dipped a little in May (+2.2 %) and June (+1.3 %). The REECOX value rose by 8.9 % quarter on quarter to 204.3 points, a level it last exceeded in January 2018.

Business climate records double-digit growth

The positive overall performance is being driven to a large extent by expectations regarding the Dutch business climate, which reached a level in the second quarter that was last seen in August 2007. The business climate climbed by 16.1 % to 113.7 points. The Dutch stock markets performed a little less dynamically, with the AEX benchmark index rising by 4.2 % to 729.5 points. The FTSE EPRA/NAREIT Netherlands real estate index also recorded quarter-on-quarter growth, rising by 6.4 % to 483.2 points. The upward trend was driven primarily by the upturn in May (+4.1 %).

Synopsis of Input Variables and Real Estate Economic Situations Q2-2021

Country

Stock Index

Real Estate Economy Index

Economic Indicator

Base Interest Rate

Interest Rate 10-Year Government Bonds

Q1-2104/2105/21Q2-21Delta (%)
Q1-21 / Q2-21
DE
up
up
upup
eq
eq
328.9
339.4
348.4
356.4
8.4
GB
up
up
upup
eq
eq
203.0
217.0
219.5
219.9
8.3
PL
upup
upup
upup
eq
up
181.7
191.4
197.6
197.8
8.9
NL
up
up
upup
eq
eq
188.2
197.4
201.7
204.3
8.6
FR
up
up
upup
eq
up
229.0
237.3
244.8
245.0
7.0
ES
up
up
upup
eq
up
175.1
181.2
184.1
183.4
4.7