The tightness in the Amsterdam office market, means investors are looking more often for opportunities in other Dutch cities, property advisory group CBRE said in a report published on Friday.

Office vacancies in the Dutch capital have fallen below the critical 5% level this year and CBRE’s outlook report warns that the vacancy level is likely to tumble even further in the coming years, despite the forecast decline in economic growth.

‘With Amsterdam as one of the gateway markets of Europe, the Netherlands was one of the best performing European investment markets in 2017 with a record investment volume of €19.5bn.

‘And with a strongly performing economy and expanding occupier markets, the prospects for 2018 are sound. Investors’ risk appetite will increase in the year to come, putting more unconventional locations and investment classes more firmly on the radar. The crucial question will be whether there are enough high-quality properties on the market to satisfy investor demand,’ CBRE said.

CBRE managing director Rudolf de Boer said companies were indeed looking at other markets. The departure of VodafoneZiggo to offices above Utrecht’s central railway station was a case in point, he said.

Eindhoven

De Boer added Eindhoven is a city which is attractive because of its university of technology. The Hague, he termed a government city although it had recently developed as a base for internet security and innovation.

Clive Pritchard of property adviser Savills said that both Utrecht and Hoofddorp were viable alternatives for Amsterdam.

Hoofddorp has fewer restaurants, but it is closer to Schiphol airport and has good train connections.  Moreover, it is cheaper, he said in the Financieele Dagblad on Friday.