The size of the Dutch real estate investment market

Abstract

Real estate is an important asset class for Dutch investors. This paper gives more information on the Dutch real estate investment market and the different segments within that market. The approach to determine the market size is bottom up, based on public information on real estate assets and transactions. In addition to the determination of the market by the real estate assets, information is given on the equity and debt within the Dutch real estate market. In the past the Dutch institutional investors held large direct real estate portfolios, but currently their direct real estate holdings are decreasing. This paper also gives information about this activity of their real estate investments. Despite their decreasing direct real estate portfolios they are investing more indirect and international. To get a clear overview of their real estate investments activity as a whole these investments are included. Besides the size of the traditional real estate investment market also the largest real estate categories which arenít currently seen as part of the investment market are mentioned. The total market size gives more information for coverage of IPD indices. The market size is also important for the weight of the Dutch real estate returns in European and global indices. Those indices are weighted on the actual market sizes instead of the real estate measured by IPD. International investors are interested in figures on the total real estate investment market as well preferring investments in large and liquid real estate markets.