Savills latest Netherlands Market in Minutes report highlights that price corrections over the last six-12 months in the Dutch investment market have narrowed the gap between buyer and seller expectations. This has, in turn, led to an increase in the number of investment deals from 96 in January to May 2012 to 121 in the same period in 2013, whilst the respective total transaction volumes decreased from €1.2 billion to €750 million, according to the international real estate advisor. The firm forecasts that transaction numbers will continue to rise in 2013 and 2014, partly due to pressure on German open-ended funds to sell their portfolios, and expects the total investment volume by year end to reach a similar level to 2012, at €2.5 billion.
Jeroen Jansen, head of research at Savills in the Netherlands, says: “Compared with some European markets price corrections in the Dutch investment market have been more gradual. However, over the past six to 12 months we have seen further price corrections across all sectors with asking and bidding prices increasingly aligned resulting in a higher number of transactions.”
The firm notes that this reduction in prices has created a favorable market for opportunistic investors with secondary and tertiary assets dominating activity. Nonetheless, demand for the prime segment remains stable according to the report, with an ongoing strong presence of German funds on the buying side. Recent deals include Union Investment’s purchase of the AKZO Nobel HQ development and Marina Offices both in Amsterdam and the acquisition of the De Kroon building in The Hague by Real IS, all advised by Savills. Financing for this type of product is available according to the firm but is more difficult for non-prime stock.
Clive Pritchard, head of Savills in the Netherlands, adds: “The interest from opportunistic investors, both domestic and international, is substantially increasing and we expect to see this interest turn into more transactions over the coming months.”