Saturday 06 June 2020

Commercial property investment fell by 39% in April: CBRE

Zuidas business district. Photo: DutchNews.nl

Commercial property investment has fallen by almost 40% this April compared with last year, according to an analysis by property consultant CBRE.

Although the first quarter of the year showed record volumes of transactions in Europe, the body says that investment in Dutch property dropped by 15% compared with last year. By April, there was a 39% difference due to coronavirus lockdowns, and the difference between the selling price and what people will pay is increasing.

While hotels sales hit a peak at the end of last year, this sector has been hardest hit, and the average profit per room has dropped by more than 30% in Amsterdam and a quarter in the country as a whole.

However the CBRE predicts that domestic home sales will remain relatively strong due to population increases, a shortage of housing and historically low mortgage rates. Although the value of sales fell by 35% compared with 2019, this was still higher than in 2018. But, it adds, consumer confidence has plummeted, which will reduce willingness to sell and to buy in the general population.

‘This will make the rental sector only more appealing to renters and investors,’ it advises.

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