Market in Minutes - the Netherlands Q3 2024

Key findings:

• ECB interest rate cut: The European Central Bank's deposit interest rates dropped for the third time in 36 days in Q3 2024, and now stands at 3.25%. Inflation remains high (3.3%), driven mainly by strong wage growth and price increases in goods, services, and food, despite falling energy costs.
• Occupier trends: Commercial real estate occupiers are showing caution in expansion decisions, as reflected in the Q3 2024 take-up figures.

1. Industrial and logistics: A sluggish economy, combined with a more critical approach from occupiers towards the location, quality, and sustainability of industrial and logistics real estate, led to a take-up decrease of 15.56% and 14.82% YOY, respectively, in Q3 2024.
2. Offices: Take-up decreased by 36% YOY, amid ongoing challenging economic conditions, rising office costs, and the persistent debate about working from home versus returning to the office.
3. Retail: The retail sector experienced the smallest decline, with take-up falling just 6% YOY. Nonetheless, the number of bankruptcies in this sector is steadily increasing.

• Investment activity: Total investment volumes were up 30% YOY. This increase is mainly caused by the sale of 60% of ERES REIT’s Dutch residential portfolio for approximately €760 million.