The value of Dutch office properties will shrink by a further 15% to 20% this year, ABN Amro analysts say in a new report.

Valuations are under pressure because of the economic crisis, the greying of the population and the rise in home working. This in turn has reduced demand for offices, the analysts say. Some 14% of the country’s 50 million square metres of office property is currently vacant.
At the same time, potential buyers are finding it hard to get bank funding, which is further reducing valuations. There are also wide variations in quality and the impact of the decline will be felt much harder at the bottom end of the market, the report states.
Amsterdam city council earlier this week announced measures to set up a ‘demolition fund’ to help reduce the amount of surplus office space in the city.