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Netherlands
The Netherlands is the sixth largest market
in Europe by stock. The centre of the Dutch
economy lies in the Randstad conurbation,
which includes the four largest cities of the
Netherlands – Amsterdam, Rotterdam, The
Hague and Utrecht. More than half of the total
office stock nationwide is in this area. The
so called Brabant region in the south of the
Netherlands is very relevant for production,
manufacturing and logistics.
Amsterdam is the main focus for investors,
accounting for an average of 25% of the total
investment volumes in the Netherlands over the last
ten years. The areas around the large train stations
of Amsterdam (Center, Zuidas, Amstel, Zuidoost)
and Schiphol Airport are the prime investment areas.
Dutch and German investors dominate the prime
areas of the Netherlands.
The Netherlands has an active REIT market, with
some REITs having expanded their remit outside of
the country. Dutch institutional investors dominate
the residential and retail markets. Recently there have
been signs that foreign investors are entering these
markets due to attractive yields in historical and
European perspectives.
The Netherlands is attractive for logistics investors,
with the largest European seaport Rotterdam,
Schiphol Airport and excellent infrastructure leading
into Europe. Demand for logistics investments is
therefore strong.
As lending by Dutch banks has been restricted
recently, as they restructure their balance sheets,
opportunities for foreign lenders have emerged.
German banks and mezzanine funds are entering the
market.
Market sizing
Netherlands
Europe
Invested stock
(Total stock)
EUR 176bn
(EUR 283bn)
EUR 3,335bn
(EUR 8,201bn)
Liquidity ratio
(10y average)
3.8%
(3.0%)
5.6%
(4.6%)
2014 volumes
(10y average)
EUR 6.9bn
(EUR 5.4bn)
EUR 187bn
(EUR 142bn)
Market pricing – Amsterdam/Rotterdam (Q4 2014)
Office
(Amsterdam)
Retail
(Amsterdam)
Industrial
(Rotterdam)
Current Yield
5.50%
4.15%
6.75%
Min/Max (10y)
5.25-6.75% 4.00-5.75% 6.75-7.95%
Yield definition
Gross initial yield (Gross Rental Income/
Gross Market Value)
Source: DTZ Research
Investment activity by source of capital, 2014
Investment activity by asset type, 2014
Source: DTZ Research
Source: DTZ Research
Domestic
Non-European
European
Office
Mixed Use
Retail
Industrial
Other
38%
62%
70
28%
2%
55%
23%
20%
2%
34%
25%
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74 Investors Guide to Europe 2015