According to Savills latest report on the Netherlands, the volume of Middle Eastern and Asian capital invested into Dutch real estate is predicted to double, with a number of large deals expected to close over the next few months.
Jordy Kleemans, Head of Research & Consultancy at Savills in the Netherlands, says: “In 2014, almost 90% of capital invested in Dutch real estate was of European origin, primarily the UK, Belgium and Germany, and more recently, Sweden. Since then, the proportion of European investment has fallen to between 70% and 80% as North American, Asian and Middle Eastern investors have deployed increasing amounts of capital into real estate in the Netherlands.”
Over the past two years, the Netherlands has seen investment from China, Singapore, Qatar, India, the United Arab Emirates, South Korea and Saudi Arabia. One of the key attractions of the Dutch market is the strong performance of the country’s economy.
In May this year, Rasmala Investment Bank purchased the DuPont development at Dura Vermeer's Leiden Bio Science Park and in the same month, Korean investors Hana Alternative Asset Management and NH Investment & Securities acquired the EDGE Amsterdam West office redevelopment.
Top 3: Largest new entrants on the Dutch real estate market (over the past 5 years), including the dominant investment categories:
1. Canada (offices and homes)
2. South Korea (offices and logistics)
3. Malaysia (hotels and logistics)
Top 3: Highest growth in investment volume in Dutch real estate by existing foreign investors (over the last 5 years relative to the 5 previous years), including the dominant investment categories:
1. China (offices and hotels)
2. Singapore (hotels)
3. Sweden (residential and business premises)
Jan de Quay, Managing Director Investment at Savills in the Netherlands, adds: “The highly diversified inflow of foreign capital is lending added buoyancy to the Dutch real estate market. So even if one country withdraws their investment, for example in case of an economic slowdown, this will have less of an impact than would have been the case in the past.”