While both Belgium and the Netherlands are historically relatively stable markets, especially compared to the UK, at present Belgium seems to be the less volatile of the two, according to Arnoud Vlak, managing director of IPD Benelux.
While both Belgium and the Netherlands are historically relatively stable markets, especially compared to the UK, at present Belgium seems to be the less volatile of the two, according to Arnoud Vlak, managing director of IPD Benelux.
In terms of the IPD index, Belgium performed better than the Netherlands in 2012 with a total return of 3.6%. This compares with 1.2% for the Netherlands where values continue to decline, particularly in the office sector which turned in a negative performance in 2012.
Having said that, Dutch retail has not so far shown a significant decline in values while this market, especially secondary and tertiary locations, has some serious vacancy problems to contend with.
But although the Belgian and Dutch markets are being hit by the fallout from the global financial crisis, their capitals - Brussels and Amsterdam - continue to outperform other cities in Europe over the longer term, Vlak argued. ‘Both the Amsterdam and Brussels markets are not so volatile. There are risks for the total Dutch market, but the London market is the most volatile in Europe. Paris is more volatile as well.’
The full story appears in the July-August edition of PropertyEU Magazine.
