Netherlands office markets of Rotterdam and The Hague recorded significant investment turnover during H111, at €80m and €107m respectively, with Amsterdam in line with last year’s figures at €200m but Utrecht’s €67 million falling slightly lower. International investors continue to show strong interest with net yields recorded at between 5.3% and 5.7%, according to Savills.

The international real estate advisor reports that the yield gap between prime and secondary office locations has widened to 100 bps in Rotterdam, 130 bps in Utrecht, 150 bps in Amsterdam but the widest gap of 170 bps was recorded in The Hague market. 

Jeroen Jansen, head of research at Savills Netherlands, says: “The Hague office market in particular showed promising figures with investment volumes increasing 9% but occupier demand jumped to 34%. However, we expect overall figures for the occupier market to remain stable in the second half of the year - the challenge of over supply continues.”

Amsterdam has seen supply increase to 1.25 million sqm, with the overall vacancy rate climbing to 17.6% and the Southeast and West areas of the city accounting for 45% of supply in total.  Supply in Amsterdam’s South Axis has decreased to 11.3% vacancy where highest rents can reach €340/sqm/year. Elsewhere, Utrecht and Rotterdam have recorded rates of 15.9% and 15.0% respectively, and 12.2% in The Hague – highest prime rents in these cities are at circa €200 sqm/year.

Jansen continues: “Occupier markets in all four cities vary significantly with The Hague driven by the public sector compared to Amsterdam where business and financial services account for 73% of the letting volume. The good news is that across the board, in response to demand, rental values have continued to remain stable.” 

For further Information, please contact:
Jeroen Jansen, Savills research Netherlands, +31 (0)20 3012094
Victoria Buchanan, Savills press office, +44 (0) 20 7409 8940