Asian investors raise their stakes in Dutch real estate

Trends

Asian investors raise their stakes in Dutch real estate

Dutch Real Estate Predictions 2016

The last years, Asian investors have been entering the European real estate markets and also are making their way into Dutch real estate. We believe they have every reason to raise their stakes in the market during 2016.

January 28, 2016

The establishment of an Asian infrastructure

Asian institutional investors are given increasing freedom to invest beyond their country’s borders and are equipped with sufficient funds to have an impact abroad. With Asia steadily opening up its capital markets, billions will soon be flowing beyond Asian borders. With the opening of the Amsterdam Branch of China Construction Bank and the presence of for example China life, Anbang and First Sponsor Group Limited we see the establishment of an Asian infrastructure which will facilitate future real estate investments in predominantly Amsterdam.

And why not? The Netherlands features a stable economic growth, political stability and a solid legal system. Furthermore, the dollar exposure for many of the Asian investors is very high, whereby they seek investments in Europe to diversify their currency risk.

Focus on hotel properties and trophy assets

We foresee the interference of Asian investors in the battle for prime real estate in 2016, which will boost transaction prices and lower yields. They will be a significant investor class able to compete with the Anglo Saxon and German investors, currently owning prime properties. Besides, Asian investors will focus on hotel properties and so called trophy assets like properties with monumental value.

A point of attention is the Asian economy. Take China for example, a further downturn of the Chinese economy could threaten the ongoing trend of Chinese capital flowing into foreign economies. If the Chinese government suddenly forces institutional investors to withdraw their money and invest in the Chinese economy, the result could be a standstill of Asian real estate investments in The Netherlands. However, Asia is not only represented by China. Investors from Japan, South Korea and Taiwan are knocking on our door as well.

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Dutch Real Estate Predictions 2016

  1. Big data in real estate: too big to ignore
  2. Omni-channel: transforming the retail landscape
  3. Asian investors raise their stakes in Dutch real estate
  4. Construction: significant rise of new residential projects
  5. Logistics: technology is redefining the retail supply chain 
  6. Changing legislation creates opportunities in healthcare
  7. Real estate steps up as a key tool in the battle for talent
  8. Blockchain: the next game changer in real estate?
     

More information?

Want to know more about Deloitte Real Estate or the Dutch Real Estate Predictions 2016? Please visit our Real Estate website or contact Wilfrid Donkers via WDonkers@deloitte.nl or +31 (0)88 288 1890.

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