Dutch real estate market adjusts to structural shifts as Eindhoven sees tech growth momentum

The Dutch real estate market entered 2025 on uneven footing, as different sectors have responded to economic shifts, sustainability demands and structural pressures in distinct ways. Yet amid national-level uncertainty, cities like Eindhoven are charting a clearer path forward, using public ownership and targeted investment to shape long-term development in high-value sectors.

While the offices sector in the Netherlands continued to face headwinds from hybrid work, logistics remained relatively resilient, and the living sector was buoyed by persistent housing shortages, according to the latest Marketbeats Netherlands reports from Cushman & Wakefield.

In the office market, occupier activity remained cautious in Q1, with hybrid work patterns continuing to dampen space demand, especially in secondary locations. Prime office space in well-connected urban areas continued to outperform, but the national vacancy rate ticked upward. Tenants showed a clear preference for energy-efficient, modern space, reinforcing the flight-to-quality trend.

The industrial and logistics sector showed modest but stable demand, particularly near major ports and population centres. Occupier take-up fell from recent highs but remained historically strong. While availability increased slightly, vacancy rates stayed relatively low, and speculative construction remained limited.

In the residential and living sector, demand remained high despite a complex regulatory environment. Structural housing shortages and population growth underpinned strong investor interest, particularly in rental housing. Developers faced constraints due to zoning, sustainability standards and interest rates, but the appetite for turnkey and forward-funded projects persisted, especially in major cities.

Nowhere is this strategic alignment of investment and planning more evident than in Eindhoven, where the municipality is taking a direct role in shaping future development through the acquisition of the Brainport Industries Campus (BIC). In February, the city council voted overwhelmingly in favour of acquiring BIC 1, a flagship complex currently housing 2,000 employees and 500 students. The move is aimed at reinforcing Eindhoven’s position as a leading European hub for advanced manufacturing and high-tech innovation.

“The acquisition allows us to shape the long-term development of Brainport,” said Stijn Steenbakkers, Eindhoven’s deputy mayor. “This aligns with our vision of fostering a globally competitive technology ecosystem.”

The development also comes amid growing demand from semiconductor firms like ASML, Europe’s largest technology company, which is planning a major expansion at a new site known as BIC North. This could generate up to 20,000 new jobs, increasing pressure on housing, infrastructure, and talent pipelines. To meet this challenge, national and regional governments launched the €2.5 billion “Project Beethoven”, funding improvements to schools, housing, hospitals, and transport infrastructure in the Eindhoven region.

A notable share of the funding has come from the private sector, highlighting the strength of the city’s public-private partnerships. ASML and other local businesses have also contributed to a €245 million housing fund, intended to accelerate the development of 100,000 new homes over the next 15 years. The Eindhoven metropolitan area is expected to grow from 850,000 to over one million people by 2035.

“We need to ensure Eindhoven remains an attractive destination for skilled professionals at all levels,” Steenbakkers said at a Real FDI panel during Expo Real 2024 in Munich. “Attracting talent is critical to sustaining our high-tech economy.”

Eindhoven’s long-term strategy — acquiring land to manage business diversity, investing in housing and infrastructure, and aligning with major corporate partners — provides a city-level case study in how targeted development can align with broader macroeconomic goals. As national real estate markets adjust to economic volatility, projects like Brainport offer a glimpse into the future of integrated, innovation-led planning in the Netherlands.