West Axis in the making

The Savills Blog

West Axis in the making

Despite COVID-19, the developments in the Amsterdam office market are in full swing. One of the most important extension locations is Amsterdam South East. This location is already seriously considered as the new South Axis.

 

Not only Amsterdam South East is an area in development, the Westside of Amsterdam is also undergoing a considerable transition. These developments ensure an important quality stimulus for the office market.

When thinking of the Amsterdam office market, you might not directly think of the Westside of Amsterdam. However, the area comprises two key office clusters; the area around the Lelylaan train station and Schinkel.

What is happening here? The coherence between the different office clusters and the intermediate residential property has been very limited so far, however, this is about to change! outdated office buildings will be replaced by homes, and new office (re)developments are in the pipeline.

In addition, in the period up to 2030, more dwellings will be added to the Westside of the Ringzone. One of the main reasons for these substantial changes is to alleviate the unsustainable pressure on the Amsterdam housing market. In addition, various facilities will be added to the area, such as restaurants and shops. This will transform the area from monofunctional to a well-balanced area with a variety of functions.

The infrastructure will also be improved. This includes a whole new so-called Airport Sprinter between Schiphol and Amsterdam Central station, with an additional stop at the Lelylaan train station. Therefore, from 2023 onwards, the train frequency will increase sufficiently (the train departs every 6 minutes), which in turn leads to a significant improvement of the accessibility.

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The important question is, will the West Axis become the new South Axis?

Both areas have rather similar qualities, its location in relation to the centre of Amsterdam, the easy access to public and electric transportation, and a well balanced mix of facilities. At this time, the coherence in the Westside area is still reasonably inconsistent. However, the number of new developments will help improve the West Axis. Unlike the South Axis back in the day,  effort is being directed towards multifunctionality right from the start. This is also reflected in the planning of two office developments, which will increase the quality of the office supply in the West of Amsterdam. Berghaus  Plaza comprises approximately 23,000 sq m of office space and 600 dwellings, and West Beat comprises 2,000 sq m  of office space, 150 homes and 1,500 sq m of F&B.

It appears from the above developments that this area, together with South East, is going to be one of the key expansion areas in Amsterdam. In my opinion, this quality-boost will certainly lead to an substantial increase in the real estate value of the “West Axis". 

Reinier Wegman, Head of Sales at Savills in the Netherlands

We have experienced similar value increases of offices around the South East and Sloterdijk train stations where office rents have increased considerately to 300 euros per square meter. 

  

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