The Dutch economy has seen considerable growth with GDP rising consistently for the previous 19 consecutive quarters.
A growing economy has led to increased consumer spending with retail turnover growing by 3.3% in 2018 – the second highest growth rate for the country over the last ten years. The e-commerce market, in particular, has benefited massively with a 17.8% YoY increase!
An interesting statistic uncovered from Savills research was that e-commerce only accounts for 10.2% of total Dutch retail sales – much lower than other markets such as Germany and the UK. However, e-commerce usage in the Netherlands is the highest in the EU at 84%, showing a massive opportunity to convert ‘browsers’ into sales.
E-commerce growth has resulted in high demand for logistics space and with the sales opportunities available, this growth can be expected to continue. Unsurprisingly, with the growing demand, investor interest has increased massively and has delivered a highly active market.
Some large acquisitions this year include:
The rise in demand is quickly catching up with supply, forecasting increased rents and higher property asset value. The Netherlands logistics sector is clearly a lucrative market to be a part of and if the retail market continues to thrive as anticipated, it will only gain more investor interest.