In a strong second quarter, European investment volume rose 4% to $58bn. Taken together with a strong first quarter, European investment volume in the first half of 2017 is now 7% above the volume of the first half of 2016.
In Germany, investment volume increased 25% in the first half of 2017, making the first half of 2017 the second strongest first half in German history. In the Netherlands, particularly due to a very strong second quarter, investment volume increased by 73% compared to the same period in 2016. Countries where investment volume also grew strongly were Spain, France and Russia. Here, investment volume increased by 51%, 31% and 20% respectively in the first half of 2017. These increases were balanced by declines in both France and Sweden of 16% and 7%, respectively. Britain appears to be leaving political uncertainty behind. In the first half of 2017, investment volume here increased by 18%.
Dré van Leeuwen, Head of Capital Markets (JLL): "The Netherlands is still high on the wish list of many (inter)national investors. This is also evident from the figures. In the first half of 2017, almost €8.5 billion was invested in Dutch real estate, setting a new record. With persistently low interest rates and strong improvements in the various user markets, we expect demand for Dutch real estate to remain strong. Together with the investments already in the pipeline, this is going to result in a historically high investment volume in 2017."
Investment pressure pushes initial yields to historically low levels
The capital still looking for suitable investment product remains undiminished. This capital is increasingly spreading across the Netherlands due to limited available supply in Amsterdam where initial yields have further tightened to historically low levels.
"Investors continue to show great interest in Dutch real estate. We see investors focusing, more strongly than in the past, on locations where rental growth is expected in the short to medium term. In doing so, investors are paying attention to the quality of tenants and the future viability of locations," Van Leeuwen added.
Source: JLL