Yesterday Troostwijk presented the results of its scientific studies in real estate investment strategies of large Dutch and German institutional investors. The University of Amsterdam and Ebs Immobilienakademie in Berlin undertook the annual studies.
The result shows that the real estate portfolio of Dutch investors increased again during 2001. Indirect real estate (shares in real estate funds) continues to be most popular. No less than 62% of all institutional investors (pension funds and insurance companies) will invest more in real estate the next three years. Dutch investors estimate that â‚¬ 5.8 bln will be involved.
Although yields have decreased somewhat compared to last year, Dutch investors realized high new yields compared to other investment categories. Real estate funds realized a total yield of average 10.9% and institutional investors realized 13.8% on investments in direct real estate.
Other outcomes were: Outside the Randstad (Western Holland) most popular area is the Nijmegen/Arnhem area. Investors are more critical when it concerns the office market. Some 42% expect declining rental prices. About 75% of institutional investors considers the real estate market unfavorable. Nevertheless, one-third is prepared to increase their investments in rented office complexes.
Institutional investors are more positive regarding the housing market. Some 61% expect that prices will continue to increase. Up-market rental accommodation and senior citizen housing projects will become popular.
Due to the decline in stock market prices the total investment portfolio of pension funds decreased by 5.5% since January 1, 2002. According to 92% of the respondents will this have no effect on their real estate investment strategy.