How is the Dutch real estate market developing? A market commentary by Wouter de Bever, Managing Director of Deutsche Hypo – NORD/LB Real Estate Finance.
The Dutch commercial property market is recovering, but there are differences depending on the asset class. In the residential sector, high demand meets little supply as construction activity is low. The law to relieve the housing shortage (Affordable Rent Act), which came into effect on July 1st, has had little impact. Due to stricter requirements and higher taxes for landlords, many apartments are converted into condominiums and thus withdrawn from the already small free rental market. Measures implemented by the new government in September are intended to improve the situation on the housing market. However, these are somewhat controversial considering the counteracting impact on the Affordable Rent Act.
ESG-compliant buildings in central locations are particularly in demand for office properties. The situation for secondary locations is more difficult. The market for logistics properties continues to work well, but also feel the effects of a weaker economy. For prime locations, however, the prices rise due to the limited offer, which leads to falling yields. The retail asset class must be viewed in a differentiated manner: there have been several bankruptcies, but FMCG focused concepts are still attractive.
For us, 2024 is a good year, characterized by refinancings and extensions. The opportunities in 2025 will be there to take and I therefore look to the coming months with confidence.