The Dutch economy is returning to a moderate growth path, albeit with ups and downs. The first quarter of 2024 unexpectedly recorded a contraction of 0.3%, resulting from a significant decline in industrial production and a slight decrease due to cooling global trade. For the entire year, economic growth is still projected at 1.1%.
The balance between liquidity and fundamentals in the real estate market has not yet been found as of mid-2024, but underlying risks such as inflation are fading into the background. A certain degree of market recovery is expected to manifest from the second half of the year onwards. Consequently, a pivot point is in sight for the commercial real estate market: the current period marked by value corrections will be followed by a period of lower interest rates, presenting renewed opportunities for investors, who are currently largely on the sidelines.
Investor sentiment is therefore improving, creating traction to explore the market. Due to a modest transaction pipeline, the improved sentiment will translate into higher investment volumes later in the year (H2), resulting in a total investment volume ranging between EUR 10 and EUR 11 billion for the year.
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