Savills

Publication

Market in Minutes - Summer 2022

A COMPREHENSIVE OVERVIEW OF THE DUTCH REAL ESTATE MARKET.

After a very strong economic recovery at the end of 2021, the global economy is reaching its limits. Read more about this in the Market in Minutes publicatie ‘Negative sentiment and increased market interest rates lead to price corrections’.


Key findings

  • The optimism seen across international property markets at the end of 2021 has been replaced by a more sombre outlook this year.
  • Expectations of a general economic downturn, rising costs and reduced consumer confidence are already dampening sentiment among occupiers.
  • Increased construction costs, interest rates and negative sentiment will cause price corrections in the real estate investment market (as well as in other investment markets).
  • The strong fundamentals of the Dutch occupier market still offer stable ground for real estate investors.
  • In the retail market, redevelopments continue to improve the supply-demand balance and reducing vacancy rates. The demand for office space in prime locations remains strong, and the residential and logistics markets also continue to offer very solid fundamentals.
  • The Dutch real estate remains an attractive long-term investment at this time, certainly compared to the volatile stock market.
  • Despite the current uncertainties, sufficient capital will still find its way to the Dutch real estate market.
  • As a result, we expect a total investment volume of roughly 18 billion euros this year – approximately 1 billion euros less than last year.

Read the full report here.