Dutch investors return to real estate market
In 2015 investment volumes in commercial real estate in The Netherlands reached the highest volume since 2007; a total of €11.6 billion. Investor demand for retail rekindled and total investment turnover posted a record high volume of €2.8 billion. The demand for offices, logistic real estate and hotels was also higher than the year before. This is one of the conclusions of international real estate advisor CBRE as part of its 'Investment Outlook 2016'.
Especially the share of domestic investors in the investment market has grown significantly. Foreign investors are still slightly overweight, but in 2015 domestic parties accounted for 45% of the total volume - compared to 33% in 2014. CBRE also witnessed new sources of capital flowing into the Dutch investment market. Foreign buyers remain persistent in the investment market as was illustrated by the purchase and sale of various portfolios and single assets.
The Dutch market is currently in full transition. Dutch investors, REITs and institutional investors in particular, have returned to the buy-side of the market. At the same time first exits are looming for private equity firms, while they still see lots of opportunities at the buy-side, particularly for non-core segments of the market like loan sales.
As the lending market becomes more diversified, lenders will shift focus and niche markets will be targeted in search for return. Programs financing smaller loans or more complex situations like owner-occupier transactions, operational assets and development are becoming more common. In general, parties become less risk-averse.
As already outlined by CBRE in the previous edition of the Capital Markets Outlook, a notable new inflow of capital is coming from Asia Pacific. Asian investors were responsible for over €530 million in direct investments. Both singles assets as portfolios became Asian property. Dutch real estate is still good value compared to other European core countries. Yields for long-term rented, modern office buildings located in f.e. London and Paris are 120 basis points lower than in Amsterdam.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers from more than 450 offices (excluding affiliates) worldwide. CBRE offers strategic advice and guidance in property sales and leasing; corporate services; property, facilities and project management; appraisal and valuation; development services; investment management; and research and consulting. Please visit our websites at www.cbre.nl and www.cbre.com.