According to Savills research report 'City Special Eindhoven - The region as the ultimate growth solution’, the real estate market in Eindhoven is benefitting from the Brainport-region’s success. Due to the latter’s economic and demographic growth, demand for homes, business space and offices is on the rise. As a result, office space take up by volume in the neighbouring municipalities has increased by 216% over the last five years and the vacancy rate in the Eindhoven region (9.3%) has fallen below the national average (10.5%) for the first time in more than 10 years.
Since 2017, investment volumes in the Eindhoven region have increased by more than 200%, attracting more foreign (58.2%) than domestic capital in 2019 for the first time.
Increasing interest is yet to lead to significant investment volumes. This can be explained by the fact that Eindhoven is a relatively unknown territory for (international) investors with the exception of the station area. Savills research shows that two-thirds of the international money invested over the past two years have gone into buildings within walking distance of Eindhoven Central Station. Other sub-areas of the city and the region have potential, but are currently unable to satisfy international investors’ demand for high-quality office space close to public-transport hubs.
Jordy Kleemans, Head of Research & Consultancy at Savills in the Netherland, adds: “Eindhoven has two challenges when it comes to attracting international investors. Firstly, when compared to the other G5 cities, the main cities in the Netherlands, Eindhoven’s buildings are relatively old. Only about 40% of its offices qualify for energy label A, compared to an average of 55% in the rest of the G5. The second challenge for Eindhoven is that it has no real CBD and only two stations; this is in contrast to other G5 cities. This makes it challenging to create multiple hubs that are easily accessible and where people can live, work and relax.”
The wider region has several stations, all just a few minutes from Eindhoven itself, which could help facilitate further growth.