No attribution requiredGlobal property trends point to the Netherlands
Netherlands and Amsterdam particularly - stand out in Knight Frank’s list of top 10 real estate investment opportunities for 2019.
March 26, 2019Real Estate
The Netherlands - and Amsterdam in particular - features strongly in Knight Frank’s list of 10 trends and opportunities for real estate investors across commercial and residential markets in Europe, extracted from its Global Outlook 2019.
First in Knight Frank’s top 10 is European logistics, with mainland markets predicted to benefit from rental growth. Knight Frank favours investing in core markets where barriers to entry are high, such as Hamburg, Barcelona and Venlo, in the southeast of the Netherlands.
Second tier office markets come in at number two, including the likes of Madrid and Warsaw, where “occupier markets have been slower to hit the expansion phase.” At three are global R&D hubs - locations like Amsterdam and London - which are forecast to deliver strong future rental growth. According to Knight Frank’s chief economist James Roberts, the roll-out of 5G - which is expected to occur in 2019 and 2020 - will be a significant, enabling factor in the R&D of technologies such as autonomous vehicles and the Internet of Things: “another wave of the digital revolution will maintain growth momentum for office demand in tech-orientated, global cities.”.
Further opportunities are to be found across different real estate sectors, including: senior living, where operators who deliver a “true urban offer in major global centres” are expected to prosper; the private rental sector, particularly in those cities which have “employment growth and strong economic fundamentals,” such as Amsterdam, Berlin, Dublin and Madrid; healthcare, given Europe’s rapidly ageing population, with the UK, France, Germany, Spain, the Netherlands and the Nordics expected to lead the way in attracting capital; flexible offices, particularly in tech-dominated markets such as Berlin, London; and hotels, where hotel operators who “leverage technological innovation and capitalise on data capture” will do best.
Last but not least: retail
Sentiment may have turned against retail, but as a consequence “many good, though not necessarily prime, assets with strong fundamentals are mispriced” and Knight Frank is “leaning towards flagship high street shops in Madrid and Paris, and UK food-stores.” The retreat of retail from central business districts (CBDs) is also creating opportunities for mixed use developments and place-making, requiring a radical approach: “the scale of the issue will mean those developers who can engage with city authorities and other stakeholders will win.”
Real estate investment opportunities will be discussed in further detail at Europe GRI 2019 in Paris on 11-12 September.
First in Knight Frank’s top 10 is European logistics, with mainland markets predicted to benefit from rental growth. Knight Frank favours investing in core markets where barriers to entry are high, such as Hamburg, Barcelona and Venlo, in the southeast of the Netherlands.
Second tier office markets come in at number two, including the likes of Madrid and Warsaw, where “occupier markets have been slower to hit the expansion phase.” At three are global R&D hubs - locations like Amsterdam and London - which are forecast to deliver strong future rental growth. According to Knight Frank’s chief economist James Roberts, the roll-out of 5G - which is expected to occur in 2019 and 2020 - will be a significant, enabling factor in the R&D of technologies such as autonomous vehicles and the Internet of Things: “another wave of the digital revolution will maintain growth momentum for office demand in tech-orientated, global cities.”.
Further opportunities are to be found across different real estate sectors, including: senior living, where operators who deliver a “true urban offer in major global centres” are expected to prosper; the private rental sector, particularly in those cities which have “employment growth and strong economic fundamentals,” such as Amsterdam, Berlin, Dublin and Madrid; healthcare, given Europe’s rapidly ageing population, with the UK, France, Germany, Spain, the Netherlands and the Nordics expected to lead the way in attracting capital; flexible offices, particularly in tech-dominated markets such as Berlin, London; and hotels, where hotel operators who “leverage technological innovation and capitalise on data capture” will do best.
Last but not least: retail
Sentiment may have turned against retail, but as a consequence “many good, though not necessarily prime, assets with strong fundamentals are mispriced” and Knight Frank is “leaning towards flagship high street shops in Madrid and Paris, and UK food-stores.” The retreat of retail from central business districts (CBDs) is also creating opportunities for mixed use developments and place-making, requiring a radical approach: “the scale of the issue will mean those developers who can engage with city authorities and other stakeholders will win.”
Real estate investment opportunities will be discussed in further detail at Europe GRI 2019 in Paris on 11-12 September.
