nternational real estate advisor Cushman & Wakefield announces the newest report'Dutch Residential market 'a new equilibrium on the residential investment market due to a reduction in supply of large, often distressed, wallets and growing demand from Dutch parties.
Justin de Gier, responsible for the sector dwellings in the Capital Markets team at Cushman & Wakefield, said: "Due to the situation on the Dutch housing market with falling empty values, several corporations with liquidity problems and historically low interest rates, the Dutch property investment market in recent years was out of balance. This attracted the attention of foreign investors and private equity firms that are interested in an attractive risk-return ratio. The performance goals of these parties are under pressure to future acquisitions as a result of an improving housing market, increasing liquidity in the market and rising interest rates. Due to the high liquidity and the return of confidence in the housing market as an asset class, the interest of other investors remains still high. We expect in the next twelve months the first sales of (partial) portfolios of private equity firms acquired recently. "
Martijn Onderstal, responsible for the housing segment in the Valuation & Advisory team of Cushman & Wakefield, sees the new equilibrium especially opportunities for Dutch private investors: "Because we see the recovery in the occupier market the empty value appraisals play an increasingly dominant role. Until recently, the market value was determined almost exclusively on exploitation, we also see in the market today uitpondingsscenario's * weather increasingly come into focus. This is especially an opportunity for private investors, especially because our expectations in the coming years as more portfolios of smaller size, will come on the market. "
Other highlights in the report:
• The property investment volume in 2015 is expected to amount to approximately EUR 1.8 billion, which is considerably lower than the volume of 2014 amounted to EUR 2.3 billion. In subsequent years, will stabilize the annual volume to be around EUR 1.3 - EUR 1.5 billion as a result of rising interest rates and the decline in the supply extensive property portfolios.
• Dutch institutional investors will continue to focus on sustainable returns with a long-term efficient operation, but by a lack of new building they will also be active in the market for existing housing complexes.
• Regional differences will increase the Dutch housing market due to differences in demographic trends which will suffer the outlying counties with population decline and migration to the cities. For the residential investment market, this means that they have to focus even more strongly on the periphery of high-quality supply in the core, focusing on long-term operation.
The report can be downloaded here