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Investor Guide to Europe 2014
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 50%
of the total office stock nationwide (49 million sq
m) 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 190bn
(EUR 285bn)
EUR 3,380bn
(EUR 8,150bn)
liquidity ratio*
(10y average)
2.0%
(3.0%)
4.0%
(4.5%)
2013 volumes
(10y average)
EUR 3.5bn
(EUR 5.0bn)
EUR 139bn
(EUR 135bn)
Investment activity by asset type, 2013
Source : DTZ Research
Investment activity by source of capital, 2013
Source : DTZ Research
Market pricing – Amsterdam/Rotterdam (Q4 2013)
office
(Amsterdam)
Retail
(Amsterdam)
Industrial
(Rotterdam)
Current Yield 5.80% 4.20% 7.25%
Min/Max
(10y)
5.25-6.75% 4.00-6.10% 7.20-8.20%
Yield
definition
Gross initial yield (Gross Rental Income/
Gross Market value)
Source : DTZ Research
nETHERLanDS
* 2012 figures
