The high demand for housing comes at the expense of other real estate segments, such as offices and business premises. Whereas previously offices were only converted into homes when they were vacant for a long time, it now happens much more often once a tenant leaves.
This is stated in the ABN AMRO real estate sector forecast. The value of rental properties in the free sector increased by far the most of all types of real estate. "With 52.7 percent since 2014," says sector economist Madeline Buijs.
According to ABN, this sharp increase has resulted in many offices being converted into homes. "Initially these were mostly vacant offices for a long time, but nowadays mainly offices are being converted that could find a tenant. It is more lucrative to build houses in them than to rent them out as offices."
Existing offices are also optimally utilized, according to Buijs. "The vacancy rate is only 6 percent."
The outlook for the entire sector is slightly less rosy
According to the forecast, the outlook for the entire real estate sector for the coming years is slightly less bright than in previous years. "That is not strange considering that economic growth is declining slightly," says Buijs.
As a result, the value of the real estate increases less than in previous years. That therefore differs per segment. "A number of segments have to do with the consequences of a lack of new construction, such as business premises, rental properties in the free sector and offices." As a result, these types of spaces are becoming scarcer, so that they are worth something more.
That cannot be said of stores. "They have to do with structural changes," says Buijs. "The demand for retail properties is under pressure because consumers are increasingly buying online."