Stable returns draw investors to the lowlands

The Benelux region may not be the best place to make big bucks quickly, but for investors with a long-term horizon it remains an attractive proposition, according to Arnoud Vlak, managing director of IPD Benelux.

‘In terms of returns, investors in the Benelux may not get filthy rich, but it is possible to get good risk-adjusted returns,’ he said.

The structure of the Dutch, Belgian and Flemish economy is interrelated and the attitude of the governments in these regions is very similar. Logistics is driving the region with the main ports of Antwerp, Zeebrugge, Rotterdam and Amsterdam Schiphol, he added.

‘It is an extremely powerful region focused on trading, services and finance. That will not change. Even if the eurozone remains in decline, Europe will remain a huge economy on a global level. The Benelux is one of the most powerful regions with very little volatility.’

Vlak made the comments at the PropertyEU Benelux Investment Briefing held at the Realty real estate fair in Brussels at end-May. In the autumn of this year, Vlak aims to present a new composite indicator for the Benelux including Luxembourg as well as Belgium and the Netherlands.

The globalisation and increased regulation of capital markets has broader ramifications for investment markets, and regions rather than states are becoming more important, he said. A number of regions driven by macro-economic fundamentals have already emerged in Europe, he said, pointing to the greater London area, the greater Parisian region, Munich and Frankfurt.

From a broader perspective, the Benelux falls into the same category, he said. The region includes the heartland of the Netherlands or Randstad region, the area around Antwerp and Gent, Brussels as the capital of Europe, Amsterdam as one of the leading financial centres in Europe, and Luxembourg somewhere in between. ‘The Benelux is a true economic zone or region for that matter and it is IPD’s duty and obligation to support it from a property point of view.’