Investment volumes have risen slightly
In 2010, investment volume increased slightly. Some € 6.2 billion was invested in real estate. With the exception of the market for industrial real estate, there was more investment in all sub-markets.
Germany is the front runner as investor in Dutch offices
More than half of foreign investors in Dutch real estate were of German origin. Many German funds have sufficient capital that must be invested. Germans are
primarily interested in Dutch real estate because of its good track record, transparency and the compactness of the Dutch real estate market.
Investments from institutes increasing
The real estate in the portfolios of institutional investors, after a moderate year in 2008, rose to € 114.5 billion. The shift from direct to indirect real estate, which has been visible for a number of years, continued apace. In the coming years, institutional investors are expected to invest more.
Drastically fewer issues of real estate funds
The number of issuers of real estate participations has drastically reduced because of the economic crisis. Last year, various issuers were taken over or went bankrupt. A further round of consolidation is expected to take place.
Initial yields fall for the best locations
Initial yields for the best real estate fell in 2010. At the top of the market, for shops in the principal shopping streets, initial yields of around 5% were paid. For offices, initial yields at the end of 2010 were around 6%, and, for industrial real estate, they fell to just under 8%. The difference between the initial yields for top locations and other real estate, the yield gap, grew strongly in all
sub-markets.
Total revenues for real estate are slightly positive
Total revenues for real estate rose in 2010. Stable rental income is thus very important. Such revenues compensated for the fall in value in most segments. Shops are a good exception. They showed a positive direct and indirect return.
Sustainability is an integral component of the real estate process
Increasingly, more investors have introduced sustainability into their investment policy. Investors who do not do so will miss the boat and end up with non-sustainable real estate stock. FGH Bank therefore expects that sustainability will become an integral component of the real estate process within a few years.