Amsterdam in European top 3 of cities for international real estate investors
Amsterdam is in the top 3 of European cities for investors planning to invest in the next 12 to 18 months. It is the first time that Amsterdam has been in this top 3.
Amsterdam comes in third place as preferred city for investors, following Paris and Madrid. Frankfurt and London conclude the top 5. This is according to the results of the Investor Intentions Survey, which are being presented by real estate advisor CBRE today at MIPIM in Cannes.
Investor Intentions Survey Ranking
Growing interest in the city of Amsterdam from investors is the result of strong economic growth, the limited development of real estate, and rapidly declining vacancy rates in the Dutch capital. These developments have significantly increased the appeal of investing in Amsterdam in recent years. Investment volumes in Amsterdam have been on the increase since 2011. In 2017, the investment volume in Amsterdam was 55% larger than in 2016. Of the €19.5 billion invested in the Netherlands, a third (32%) was invested in property in Amsterdam.
Homes and hotels increasingly popular
Investors are mainly interested in office buildings. In 2017, there were nineteen transactions worth between €50 million and €175 million in Amsterdam, including properties such as The Cloud, ING HQ and Bright Offices. The largest transaction in 2017 was Amundi’s purchase of the Atrium in the Zuidas area for over €500 million. However, homes and hotels are also becoming increasingly popular with investors, with investment volumes of €1 and €1.2 billion respectively in 2017.
Interest from foreign investors in Amsterdam has been increasing for several years now. In 2017, 73% of those purchasing property in Amsterdam were foreign investors, from countries including the US (18%), Germany (14%), the UK (10%), South Korea (9%) and France (8%). As Amsterdam has been popular with foreign investors for quite some time, 48% of the vendors in the transactions were also foreign investors.
Although Amsterdam is popular with investors, it is uncertain whether there will be enough property available to meet demand in 2018.
Despite the high demand for hotel stays and office space, the city of Amsterdam has a restrictive policy when it comes to developing new hotels and offices. In addition to this, there are only a small number of new property projects in the pipeline, and a large proportion of the available buildings has already been sold.
We expect that the scarcity of real estate properties in Amsterdam will motivate investors to look elsewhere. International real estate investors will increasingly set their sights on cities such as Utrecht, The Hague, Rotterdam and Eindhoven.
Real estate advisor CBRE’s international Investor Intentions Survey is available to download on the right side of this page.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.