Record number of investments in Dutch real estate
Strong increase in transactions outside four major cities
The first quarter of 2018 shows record-breaking numbers of investments in Dutch real estate with an investment volume worth 3 billion euros. Figures published by real estate adviser CBRE show that the investment volume has never before reached these heights in the first quarter.
The investment volume grew by 5% in the first quarter compared to the same period of last year. At 56%, growth was strongest in the residential sector as compared to the first quarter of 2017. Investments in office buildings also increased significantly by 30% annually.
Growth of transactions in other regions
The increase in transactions outside the four major cities is striking. In the first quarter, no less than 50% of all transactions* took place outside the country’s four major cities of Amsterdam, Rotterdam, The Hague and Utrecht. This was only 34% in the same quarter of last year.
CBRE has noticed a market-wide rise in transactions. Compared to the first quarter of last year, the number of large deals dropped, but the number of medium-sized transactions increased in various regions.
We see a growing interest among investors for cities outside of the Randstad conurbation. This is due on the one hand to a shrinking supply and sharply declining initial yields in the big cities. On the other hand, the increasing economic growth leads to a more attractive investment climate in more and more cities outside the Randstad area.
Outlook for 2018
Our strong start to 2018 is in line with our January forecast. The remainder of the year promises to show strong investment activity as well. Due to the absence of extremely large transactions, we are expecting to see a total volume of 17-18 billion euros for 2018, just below the level for 2017.
* This does not include national portfolios where transaction can not be ascribed to a specific city.
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.