Key findings:

1. Working from home - The Netherlands has embraced hybrid ways of working, with over half of the workforce (52.0%) working from home. The shift in work patterns is reshaping the demand for office spaces. Furthermore, The ease of commute is becoming a crucial factor in office demand, with office rents for properties located near railway stations being 34.2% higher than those outside of these areas.
2. Stable demand - Dutch office-based employment grew by 34.2% between 2004 and 2024. The demand for office space has mirrored this growth. The labour force’s size is expected to be stable up until 2040 influenced by immigration. Savills expects that office-based employment will also remain stable.
3. Connectivity evolution - Office dynamics are shifting with the growing digitalisation of the economy. 78.0% of the Dutch workforce requires internet access for work in 2022 and the growing adoption of AI technologies will further transform office use. Increasingly. buildings' value will be determined by their connectivity and ability to facilitate digital work. Future challenges for office owners will include access to the electricity grid and proximity to electric vehicles charging infrastructure.
4. ESG & vulnerability - Offices’ future viability will depend on their sensitivity to the requirements of Environmental, Social, and Governance (ESG), driven by regulatory compliance and climate change adaptation. Climate risks threaten office resilience and occupant health, with vulnerabilities including heat stress, sea-level rise, and flooding. Savills' Climate Vulnerability Index identifies that the G4’s office markets belong to the top 15 most vulnerable office markets in the Netherlands.
5. Immigration dependency - A decline in attractiveness in the Dutch Business Climate is putting pressure on economic activity and, in turn, office demand which will become more uncertain if business confidence is not restored. Crucially, the Dutch Government needs to acknowledge that the country’s future economic growth will continue to depend on (labour) immigration and businesses should use their real estate to mitigate any potential wider broader societal impacts caused by their dependence on international labour.