Record real estate investments in first half year

Investors acquired Dutch real estate worth €10 billion in the first half of 2018. The investment volume has never before reached these levels in the first half year. There has also been a strong increase in real estate investments by private investors. These are the results of market analyses by international real estate advisor CBRE.

Strong first half year for residential investments

Of the total investment volume in the first half of 2018, the greatest share went into residential properties, whereas the office market has traditionally been the largest sector. A record amount of €3.6 billion was invested in residential properties, partly driven by Vesteda’s acquisition of a residential portfolio from Nationale Nederlanden for €1.5 billion. The growth in investment in the hotel sector is also striking: €826m, more than double the figure for the first half of 2017. This represents the highest investment volume in this sector to date.

Investment volumes in the Netherlands by sector, first half of 2018

More private investments

The increase in the number of small to medium-sized transactions (up to €15m) is noteworthy. Private investors are particularly active in this segment, where the investment volume was €1.4 billion in the first half of 2018, which is 35% higher compared to the same period last year.

Private investors, mostly with a background in the SME sector, often acquire properties such as offices or shops to redevelop them through renovation and/or rezoning. Following a number of profitable years, these entrepreneurs are now moving more and more into the professional investment market.

Private investments in the region

Of transactions up to €15m, most investments took place outside the four major cities: 66% of these investments were made elsewhere in the Netherlands. Of the four major cities, Amsterdam saw the greatest investment volume, followed by Rotterdam, Utrecht and The Hague. Outside the four major cities, the greatest investment volume was in Eindhoven, followed by Arnhem, Groningen, Maastricht and Helmond.