The Dutch economy continued to perform well in 2019, although momentum did weaken during the course of the year. Real GDP growth amounted to 1.7% in 2019, which makes the Netherlands one of the most flourishing economies in Western Europe.

At a local level, a large number of local authorities are continuing to facilitate the transformation of outdated offices for other uses, supported by a lower transfer tax rate for residential property.

Before 2050, all office buildings will have to be made sustainable one way or another to convert them to low (or even net-zero) carbon.

The major demographic trends in the Netherlands are population growth, ageing and urbanisation. Due to the ageing of the population, the working age population (15 to 65 years of age) will start to decline from 2021 onwards.

Corporates experimenting with emerging technologies and the availability of capital for PropTech will transform the real estate industry and the way we work.

Related to the economic growth and positive outlook, companies are anticipating (further) growth, are more inclined to relocate and are more willing to invest in their office accommodation.

Given the low interest rate environment and the yield spread offered by real estate, investors’ capital inflow into real estate markets remained strong last year.

Bouwinvest expects multi-functional office locations with good access in big cities to continue to flourish in the coming period.

The Fund has a clear focus on future-proof office spaces, spaces that are defined by their flexibility and their role as meeting places. The offices in the Office Fund portfolio are inspiring places that people like to visit and want to work in.

The Office Fund has a clear focus on the G4, the four largest cities in the Netherlands (Amsterdam, Rotterdam, Utrecht and The Hague). At least 80% of the Fund’s invested capital will be invested in these defined core regions.