Rotterdam investment market shows strong recovery in Q2 2017

28 July 2017

Rotterdam now appears to be headed for a very strong second quarter of investment activity into commercial real estate (over € 450 million). Following record investment volumes last year (€ 1.4 billion), the first quarter of 2017 got off to a slow start with a volume of approximately € 67 million recorded.

Jordy Kleemans, Head of Research & Consultancy at Savills Netherlands, says: "The economic fundamentals in Rotterdam are positive and stable: growth in employment  (5 x the national average) and companies (3 x the national average) has exploded in recent years. Hence, the outlook for the Rotterdam market is positive."

The total investment volume is mainly stimulated by a thriving office market. The total volume of office investments in Rotterdam has fluctuated in the years after the economic crisis. Up until  2013, the investment volume fluctuated between € 100 million and € 200 million a year. However, 2014, 2015 and 2016 showed much higher volumes. In 2014, a total of € 641 million was invested in the Rotterdam office market, followed by € 763 million in 2015. With an office investment volume of over € 872 million, 2016 was a peak year, partly due to the largest investment transaction in Rotterdam's history; the sale of De Rotterdam (€ 352 million).

In Q2 2017, more than € 320 million was invested in Rotterdam offices. The largest transaction of Q2  was the acquisition of the World Port Center by MCAP Global Finance (€ 105 million). Compared to the € 33 million in the first quarter of 2017, this is almost a tenfold increase in office investment volume.

Jan de Quay, Head of Investment at Savills Netherlands, comments: "Based on market developments, the availability of portfolios and the interest of investors in the Randstad area, we anticipate that this year will match last year’s record, without even a mega transaction such as De Rotterdam."

 
 

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Jan de Quay

Jan de Quay

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Savills Amsterdam

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