‘Perpetual scarcity’ of NL resi means decades of high returns

The recent Provada real estate show, staged in Amsterdam, was an opportunity to take the temperature of the Dutch real estate markets in the post-pandemic period to date.

Summarising the sectors, Altera Vastgoed’s CEO Jaap van der Bijl said the Netherlands markets are at an interesting stage, particularly residential. “The perpetual scarcity on the markets will provide high returns for decades to come,” he said.

Talking to Real Asset Insight’s Richard Betts van der Bijl said that in the retail markets he would focus on convenience retail rather than comparison retail because of the stable cash flow. “Because of higher inflation, people will tend to spend more money on necessities.”

Selectivity is important for offices where the focus should be on the most prime locations in which working from home can be mixed with working from the office.

In terms of logistics: “Yields are pretty sharp, so be careful to watch the economy develop because that could be a bit tricky.”

But among key themes it is still ESG that dominates.  “But I’m quite passionate regarding ESG and sustainability. In broad terms, I feel we must accelerate to reach Paris well before 2050,” he said. “Our aim is to be there by 2030 so get things done,” for the benefit of both investors and tenants.

Click on the video to watch the full interview or listen to the podcast below.