Dutch property does well in Europe
Property in the Netherlands will generate higher returns than property in other European countries. This is according to research by asset manager DWS. What is this conclusion based on and what makes Dutch real estate so interesting for investors?
The coronavirus is having a major impact on our economy. The effect is particularly noticeable in sectors such as retail, hospitality and offices. For now, the real estate sector remains partly unaffected. It cannot be ruled out that the entire real estate sector will feel the effect, but the long-term outlook remains good. The property sector is well helped by low interest rates. Financing real estate is historically cheap.
What are the results of the survey?
According to DWS, the outlook for the office sector is not so favourable. As home working is embraced by companies, companies need less square metres. As a result, companies are relinquishing office space and reletting becomes more difficult. In prime locations, values will fall by 12% this year. Returns on investments in large shopping centres will fall even more sharply due to the heavy hit to retail. Property values in this sector are expected to fall by 25% by 2020.
Netherlands the most popular boy in the class due to logistics real estate
Property financing in the Netherlands is expected to remain cheap. Interest rates on Dutch government bonds remain low. This makes borrowing money cheap for individuals and companies. The Netherlands comes out of the survey especially well due to logistics real estate. This is because online shopping is growing strongly. Retail is losing investor charm, but distribution centres are 'booming'. Are you interested in logistics property? We can arrange financing for that too.
Dutch housing market disrupted
Something is seriously wrong in the housing market in the Netherlands. The demand for houses is much higher than the supply of houses. This is causing rising house prices and it is also affecting rental houses. Houses that do not come under the heading of social housing are free sector rental houses. Of the social rental houses, rents have been kept as low as possible due to government interference. But tenants who qualify for these houses will face long waiting lists in parts of the Netherlands. They often have to wait many years, so refuge is sought in free sector rental houses.
Favourable outlook for investing in freehold rental properties
Investing in a residential property with a reasonably affordable rental income will be especially interesting. These are easy to rent out and they provide a stable income. With home ownership, more demand for larger flats is also expected. Especially if the flats also have a balcony or outdoor space.
Are you looking for a profitable investment property? We can help you. Or do you want to put your private or your business cash away smartly? We know what is on offer and how to make your money work for you. Above all, contact us to talk through how we can help you.
