Key findings

• The strongly recovered Dutch economy over the past few months gave plenty of reason for positivity on the Dutch property consumer market.
• The strong inflation and economic uncertainty resulting from the Russia-Ukraine conflict will cause occupiers and investors in the Dutch property market to review their strategies. 
• Rising interest rates, increasing construction costs and inflation-bound rent increases will have an impact in all aspects of the property market.  
• Increases in interest rates will be monitored closely for the investment market. This makes property which is partly financed with borrowed capital increasingly less profitable, although rising inflation and therefore indexation will mitigate this effect. 
• Investors will therefore have to decide between lower yields in top locations or investments outside of the established locations, in particular within the ‘core’ sectors logistics, residential and convenience retail. 
• On the other hand, it is also questionable whether investors can continue to accept this lower yields in the long term or whether the yields will start to increase if interest rates rise (further).

Read the full Market in Minutes report here.