Dutch real estate returns slip to 7.1%

NETHERLANDS – Dutch real estate returns fell to 7.1% in 2003, from 8.8% in 2002, according to data from ROZ/IPD.

“Property maintained its middle ranking position in comparison with the other two main asset classes which both experienced a reversal of fortunes,” ROZ/IPD said.

“Over the last nine years, property has delivered better returns of 11.9% per year, comfortably ahead of equities and bonds, at 9.5% and 7.9% per year respectively. Property equities have delivered returns of 10.7% per year over the same period.”

The returns were: retail - 9.1%; office - 4.8%; residential - 7.1%; industrial - 6.5%; mixed/other – 10.5%.

“For the second year running retails were the best performing sector with total returns of 9.1%,” it said. “The office and industrial sectors declined markedly in relation to the other sectors with returns down to 4.8% and 6.5% respectively.”

Amsterdam was a “significant drag on returns” in North Holland with underperformance in office and residential.

ROZ/IPD’s database includes 6,243 properties valued at 38 billion euros – or around 80% of the real estate assets owned by institutions and Dutch quoted property firms.

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