Savills : presents Netherlands Market in Minutes report at PROVADA 2017

According to the report 'Netherlands Market in Minutes - June 2017' published today by international real estate advisor Savills, the limited number of new developments and very low supply at prime spots will cause a bottleneck and might possibly slow down take-up for the second half of 2017.

The economic growth and positive economic outlook (with the highest levels of producer and consumer confidence we have seen in years) have supported the occupier market across all property sectors in the first half of 2017. As prime office supply is drying up - leading to lower incentives and increasing rents - we also see secondary locations profiting. The setback in take-up of last year was thus temporary, as we expected.

Wouter Stevens, Head of Agency at Savills Netherlands comments: 'Noteworthy is the increase in office space for tech companies in Amsterdam, such as Uber, Netflix and Amazon. Amsterdam is becoming a real tech hotspot, as confirmed by our recent Savills Tech Cities report.'

Commercial and residential investment activity increased and reached €4.4bln in the first four months of 2017, compared to €2.5bln in the same period last year. New investors like HighBrook are entering the market.

Jan de Quay, Managing Director Investments at Savills Netherlands says: 'The office investment market showed a spectacular growth of 79.3% compared to the first four months of 2016. The Atrium deal contributed significantly to this total. Noteworthy transactions in May - like the purchases of M7 Real Estate - and upcoming portfolio deals, will continue to stimulate investor volume towards or even above last year's volume.'

High-yield investors are losing interest as the supply is scarce and the market is getting increasingly expensive. However investor interest in prime product remains high. Investor demand still far exceeds supply causing the yields to drop further. However, both in the occupier and investment market, the actual supply of attractive product is starting to become a bottleneck, which will either have to lead to the development of new prime product, or looking at opportunities outside of prime.

To read more download the full report here.