Dutch housing boom continues: Savills sees investor interest shift towards regions

03 October 2017

According to the recent report 'Spotlight: Residential property market – the Netherlands' by international real estate advisor Savills, investors are increasingly looking to invest outside the Randstad area, since selling prices and rents are showing a higher growth in these more peripheral areas of the Netherlands.

Bas Wilberts, Head of Alternative Investments at Savills Netherlands, comments: “Traditional residential investors on the Dutch housing market are currently optimising their portfolios. We see that local private and institutional investors are selling existing product to acquire new developments. This offers (international) newcomers the opportunity to purchase large volumes of existing homes, against attractive returns and financing possibilities. Savills expects that new entrants will enter the market before year end. They will benefit from a housing market that is in upswing, especially in regions where rental and purchase prices are currently rising faster than in the Randstad area. "

In the first half of 2017 € 1.3 billion was invested in the Dutch residential market, compared to around € 1.9 billion in the first half of 2016. This has more to do with a lack of product than a lack of investor appetite. Investment volumes increased significantly in Noord-Brabant (€ 100 million; +55%) and Zuid-Holland (€ 258 million; +87%).

Jordy Kleemans, Head of Research & Consultancy at Savills Netherlands, adds: “We expect that the total residential investment volume in 2017 will be on a comparable substantial level as last year. As investor interest remains large and fundamentals in both the rental and owner-occupier market are strong, Savills furthermore expects a further contraction of residential yields.”

You can read the full research report here

 
 

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Bas Wilberts

Bas Wilberts

Head of Alternative
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Savills Amsterdam

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Charlotte Harmsen

Charlotte Harmsen

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Savills Amsterdam

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