Cushman & Wakefield Marketbeat reports analyze Netherlands commercial property activity across office, retail, I&L and living real estate sectors including supply, demand and pricing trends at the market and submarket levels on a quarterly basis.
The Dutch economy is returning to its moderate growth path, albeit with ups and downs. Economic growth contracted by -0,3% in the first quarter, while expanding by a solid 1,0% in the second quarter. Contributions are still two-fold. Geopolitical tensions and conflict and weak domestic demand in China are cooling global trade and industrial production, but at the same time unemployment is reaching record lows, driving up salaries and consumer spending, and inflation is persistently higher than in the rest of the eurozone. Economic growth of 0.6% is expected for the full year.
The balance between liquidity and fundamentals in the real estate market is expected to be found as the inflection point for all markets except offices has been reached at a European level. Underlying risks such as inflation are fading into the background. A certain degree of market recovery is expected to manifest in the last quarter of 2024 and into 2025. The current period marked by value corrections will be followed by a period of lower interest rates, providing new opportunities for investors, who are currently largely on the sidelines.
Investor sentiment is thus improving, creating traction to explore the market. Due to a modest transaction pipeline, it remains to be seen to what extent improved sentiment will translate into a higher investment volume in 2024 compared to last year. We expect a total investment volume ranging between EUR 10 and EUR 11 billion for the year.
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