- The Netherlands remains a top destination for property investors
- Rotterdam office rents surge 28.3% year-on-year – the highest growth in Europe
- Logistics sector remains robust: Amsterdam Schiphol records 11.1% year-on-year rental growth
- Prime retail in the Netherlands remains stable, with growth opportunities in major cities
Rotterdam has recorded the strongest office rental growth in Europe, with prime office rents soaring 28.3% year-on-year. This surge is driven by intense competition among large office occupiers for high-quality office space in prime locations. Factors such as the ongoing ‘War for Talent’ and increasingly stringent sustainability requirements are fueling demand for future-proof office buildings. These insights come from Cushman & Wakefield’s latest DNA of Real Estate report, which tracks prime rents and yields across 43 European cities.
The demand for strategically located distribution centres remains strong. In the Netherlands, this is reflected in an 11.1% year-on-year rental increase at Amsterdam Schiphol Airport. At the same time, the Netherlands remains a competitive investment market, with stable yields and slight compression in logistics property returns.
The Dutch retail market continues to demonstrate resilience, with year-on-year rental increases of 2.0% in Amsterdam and 6.3% in Rotterdam and The Hague. Demand for premium retail space remains high in key shopping streets, particularly in cities with strong visitor numbers and increasing purchasing power.
The report underscores the resilience of the commercial property market. While the office sector is experiencing record-breaking growth, the logistics sector continues to expand, and demand for prime retail space remains steady, especially in major cities. These trends highlight the Netherlands’ attractiveness as a key investment market across various real estate segments.
Annelou de Groot, CEO of Cushman & Wakefield Netherlands:
"The European real estate market is stabilising after a period of cautious investment activity, and the Netherlands is playing a crucial role in this recovery. We are seeing renewed investor interest, particularly in the Dutch office and logistics markets. The demand for sustainable, well-located office space remains strong, especially in Amsterdam, Rotterdam, The Hague, and Utrecht. Meanwhile, logistics continues to be an appealing asset class, with investors focusing on high-quality distribution centres in strategic locations. The combination of stable yields and growing demand across multiple sectors further strengthens the Netherlands’ position as a future-proof property market."
Key Findings on the European Investment Market
- Yield compression observed in 24 European markets, doubling in Q4.
- Logistics remains the best-performing sector, followed by offices and retail.
- Office rents saw the strongest annual growth (+5.4%), led by Benelux (8.2%), the UK, and Southern Europe.
- Prime retail rents in Europe increased by 3.5%, driven by strong demand on top-tier shopping streets.
- The investment market is stabilising, with rising prime property valuations.
About DNA of Real Estate
Cushman & Wakefield’s DNA of Real Estate report tracks prime rents and yields across 43 European cities, offering a quarterly performance overview of the main commercial property sectors: offices, high street retail, and logistics.
