Disappointing year for industrial real estate

Construction volume down by 40 percent

Construction volume for new industrial real estate has dropped dramatically. Last year production dropped to 40 percent below the level of 1999, the nest year ever. That turned 2001 into a very disappointing year, according to the Association of Project Developers.

Also the outlook for the next twelve months is not very promising. Even if the economy would recover, it will only be by mid-2003 before this sector will profit.

The study shows that due to an avalanche of profit warnings and disappointing economic growth figures, construction volume dropped sharply. Although disappointing figures were predicted earlier, these figures hit like a 'cold shower'.

In all of the Netherlands building permits for the equivalent of a mere EUR 1.8 bln were issued, representing some 5.3 mln sq.m.

For more details please visit www.nvb-bouw.nl.

(source: NVB)

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