Investment turnover in the Dutch commercial property market will reach between €3.5 bn and €4 bn in 2014, largely thanks to strong activity in the retail sector, according to a new research report issued by agent Savills.
Investment turnover in the Dutch commercial property market will reach between €3.5 bn and €4 bn in 2014, largely thanks to strong activity in the retail sector, according to a new research report issued by agent Savills.
The figure compares to €3.4 bn in 2013.
According to Savills' research, over €600 mln of retail assets changed hands in the first months of 2014, almost exceeding the 2013 full-year total for the sector of €615 mln.
This has been achieved through four significant individual deals in the segment combined with the sale of a €213 mln retail portfolio by Corio to a joint venture of Mount Kellett and Sectie5.
'Interest in Dutch real estate has significantly increased over the past 12 months, both from overseas and domestic buyers,' said Clive Pritchard, head of Savills in the Netherlands. 'The prime office investment market in Amsterdam was particularly strong in 2013, however as available supply diminishes, we expect buyers to turn increasingly towards prime assets in the other major cities and non-core offices in the capital.'
In terms of sectors, the office market accounted for €1.9 bn (56%) of transactions dominating market share in 2013, followed by €880 mln industrial investments. This year the office and industrial markets are expected to remain stable, whilst retail investments have already almost surpassed 2013 levels.
According to the report, yields for prime Dutch properties, which currently stand at 6% for prime offices, 4.25% for retail and 7.25% for prime industrial assets, are likely to contract further. In addition, increasing investor interest in value-add and opportunistic properties will prevent further softening of secondary yields.
