Amsterdam's office market has reached a turning point according to research by real estate advisor Savills. After the stability that has characterised the city's rental levels in the last three to four years, 2006 signalled the turning point for Amsterdam’s office market, with rents starting to increase and rising an annual 10% in the second half of 2006. 'Leasing activity and prime rents are increasing and positive economic outlook should sustain this trend. We expect further positive rental growth in 2007,' says Savills Research' director Roderik Schuwer.
Amsterdam's office market has reached a turning point according to research by real estate advisor Savills. After the stability that has characterised the city's rental levels in the last three to four years, 2006 signalled the turning point for Amsterdam’s office market, with rents starting to increase and rising an annual 10% in the second half of 2006. 'Leasing activity and prime rents are increasing and positive economic outlook should sustain this trend. We expect further positive rental growth in 2007,' says Savills Research' director Roderik Schuwer.
During the course of 2006, the office segment accounted for 57.5% of the total volume of real estate investments, or EUR 4.6 bn, positioning itself by far as the largest segment in the Netherlands. Favourable economic development led to a 50% increase in office take-up, or 517,000 m2. Office demand in Amsterdam continues to increase and the vacancy rate is down to 14%. Savills expects that supply will decline further, due to increasing take-up.