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Residential investments remain the largest investment category

Published on 08-06-2020
Homes have remained the most popular investment category in the first four months of the year, according to an analysis by CBRE Netherlands. The investment volume came to 2 billion euros. CBRE even expects investment volume to grow, based on current demand, despite the corona crisis.

Homes popular investment category

Residential investments remain very popular, with a few large transactions mainly in March and April. Last month, residential investments accounted for no less than two thirds of the total investment volume. Amsterdam and Rotterdam even recorded record volumes in the first four months of 2020, with a regional volume of 575 and 200 million euros. Despite this, investment volume declined 35.4 percent from the same period in 2019, although that picture is somewhat distorted. After all, a transaction of 1.4 billion euros took place at the time, which distorts the relations.

Buijs: “Many current transactions will be completed in the coming weeks and months”

The positive sentiment among home investors appears to have remained stable, according to CBRE. Even after the coronavirus made its appearance in the Netherlands, various housing transactions were continued from bid to completion. CBRE also expects current transactions to be completed in the coming weeks and months. “We do see that sometimes it is decided not to bring projects to the market yet, but to take them further in planning,” says Alexander Buijs, Senior Director Residential Capital Markets at CBRE Netherlands. "That ultimately makes those propositions more attractive to investors." The outlook for the residential investment market remains positive, partly due to the persistent shortage. “In conclusion, the strong foundations and stable character of the housing market are expected to ensure that demand for residential investment will remain high and may even rise in the long term,” says Buijs.