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Strong relative value in Belgium and the Netherlands

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Strong relative value in Belgium and the Netherlands

Direct property is relatively more attractive in Belgium than in the Netherlands according to our Direct European Real Estate Relative Value Index (RVI). This is especially relevant for investors considering property amongst other domestic asset types. 

However, total returns on prime property in the Netherlands are forecast to outperform Belgium over the next 5 years, based on available data for both market rent and yields across property types. 

Investment in the Netherlands more than tripled since 2014 from around €6.5bn to just over €20bn over the last 12-months to Q1 2018. Over the same period, Belgium investment volumes nearly doubled from around €2bn to €3.5bn. 

In the Netherlands office vacancy dropped significantly due to office conversions and strong occupier demand, whereas in Belgium vacancy saw a moderate decline. 

Occupier demand in the Netherlands is driven by robust economic growth (3.3% in 2017) following strong domestic consumption and exports, whereas economic growth in Belgium has been more subdued. 

Source : AEW Europe

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