Prospects remain gloomy for Dutch market: Savills

The economic situation in the Netherlands worsened considerably over the past 12 months and the short-term economic outlook shows no signs of
recovery. Overall property investment levels plummeted in the first half of 2009, with office investment totalling EUR 520 mln compared to EUR 3.1 bn over full-year 2008.

These are some of the key findings of a report on the Dutch market by UK adviser Savills. Take-up figures started falling in the course of 2008 and declined further during the first half of 2009, the adviser said. The vacancy rate - currently at 13.6% - is expected to increase further in the course of 2009 since completions outnumber the expected take-up. 'Office users are focusing on cost-saving and are cancelling or postponing relocation plans.'

The steady increase of prime rents in the major cities in the Netherlands came to a stop in 2008. At Amsterdam's Zuidas business district, rental prices
decreased in the first half of 2009, due to lower demand coupled with forthcoming new completions.

Yields for secondary property increased by 80 basis points or more over the past 12 months.