According to international real estate advisor Savills, total 2014 investment volumes in the Netherlands will reach over €8 billion, substantially higher than 2013 which totalled €4.7 billion.
Clive Pritchard, head of Savills Netherlands, comments: “The increase in volume was boosted by foreign investors, who were responsible for around two-thirds of the investment volumes of 2014."
Savills reports that portfolio deals dominated the market in the Netherlands in 2014 accounting for 42% of total investment volumes. Deals of note include Lone Star’s purchase of 32 offices from CBRE GI for €385 million, Blackstones purchase of 14 shopping centres from CBRE GI for €240 million and Round Hill’s purchase of a residential portfolio for €180 million, which was its third residential purchase in 2014. This deal demonstrates the significant increase in interest from international investors in this sector, with BNP Paribas, REIM, Aventicum, Patrizia and Heitman also entering the Dutch residential market in 2014.
Jan de Quay, director of investment at Savills Netherlands, adds: “We predict that yields will remain fairly stable, as investors interest and the increase of debt in the market will have an overflow effect towards core+, value-add and opportunistic properties. However, we could see yields contract slightly for the best quality sites.”
Savills states that total take up for all sectors could reach between 4 and 4.1 million m², very similar to the 2013 total which was 4 million m². Both the office and the industrial sector are forecast to show slightly lower take up than in 2013. Take up for offices will reach 1.13 million m² by the end of the year, compared to 1.15 million m² in 2013 and industrial demand is forecasted to reach 2.45 million m², compared to 2.47 million m² in 2013. Retail take up increased by approximately 25% on 2013 numbers to reach 465,000 m² for the full year.