More than €13.5 bn was invested in Dutch commercial real estate in 2016, according to new figures from CBRE. This record figure tops 2007, when an unprecendented investment volume of € 13.15 bn was noted.
According to the research, a runaway fourth quarter - when €5.7 bn of sales were logged - sealed the record, while €7.8 bn was transacted in the first three quarters of the year. Offices (€5.8 bn) and residential real estate (€3.3 bn) attracted the most interest, with industrial volumes stable at €1.2 bn and retail falling below 2015 figures at €1.8 bn.
'Investors are often risk-averse. Investing in a country with sound economic fundamentals and relatively high yields perfectly fits this profile. We see that investors broaden their horizon caused by a scarcity of prime product,' commented Jos Tromp, EMEA head of research, CBRE. 'In their search for yields they look beyond Amsterdam at cities such as Rotterdam and Utrecht. We also see increasing appetite for alternatives – in particular healthcare.'
'Both large portfolios and single assets traded in 2016. For 2017 we again expect high volumes, partly driven by investments in the retail market,' noted Erik Langens, executive director capital markets.
'Despite the challenges that still lie ahead, we see a number of positive signals that offer opportunities for investors. Consumer confidence hasn't been this high in the last 9 years and we think that major headwinds in terms of bankruptcies belong to the past. This, together with the fact that retail properties are relatively favourably priced, promises a good year for the retail market in 2017,' concluded Langens.
