Savills

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Market in Minutes - The Netherlands - Autumn 2023

Article

Contacts & Related Research

Read the latest developments in the Dutch real estate market below.

The Dutch real estate investment market has witnessed a significant decline in transaction activity in 2023 compared to 2022, with the slowdown continuing into the third quarter. Both the increase of investors’ cost of capital and a weaker occupier market have undermined transaction activity.

Key findings:

  1. Market activity insights: Continuing instability in worldwide capital markets has had a large impact on activity in the Dutch real estate market. In Q3 2023, investment- and leasing activity was down by respectively 54.1% Y.o.Y and 2.2% Y.o.Y.
  2. Investor confidence shift: Tougher financial conditions and tougher occupier market has undermined investor confidence, However, the increase of prime GIYs seems to be over. This might indicate that transactional activity is in the rise again, and that investors expect more stability in the upcoming quarters.
  3. Robust industrial and logistics: Savills still sees a lot activity in the Industrial & Logistics market. Supply and demand ratios are extremely tight, which is continuing to cause rental growth. Prime logistics rents have increased by 5.3% Y.o.Y. The logistics sector is expected to remain robust in the upcoming quarters.
  4. Positive outlook for 2024: Savills believes the worst may be behind for the Dutch Investment market. If more certainty around ECB Policy emerges and Government Bond market volatility stabilises, investor appetite is expected to improve. Transaction volumes could increase by up to 40% in 2024, with investors focussing on sectors with robust fundamentals.