Key findings

1. Despite geographical limitations, the population of The Hague is set to grow by no less than 16% in the next 20 years. The city’s economy has experienced strong growth, indicated by the increased number of companies active there (+62%). Moreover, this growth is attributable not just to government-related activities but also, and to an ever-greater extent, to other sectors such as IT and communications, construction and specialist business services. The office take-up figures also reveal that the diversity of users has increased enormously.
2. The Hague is investing heavily in accessibility, in particular around its three main railway stations. These are being transformed into public transport hubs surrounded by work, residential and leisure functions.
3. Due to the large number of premises withdrawn from the office stock in recent years, the supply-demand equilibrium has been largely restored in recent years. The largest office districts now even face shortages.
4. The total take-up of office space decreased significantly in 2020 compared to 2019, which is a consequence of increased economic uncertainty, but also due to a lack of high quality offices on central locations.
5. This has not impacted the investment market however, as the total investment volume remained at a high level. However, because the government owns most of the large office buildings in a number of key districts – 58% of the stock in the three largest – product availability is limited. This will cause yields to remain stable despite Covid-19.

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