According to Savills new research report "Spotlight: Gaming - a new player in the real estate market", the growth of the Gaming sector is driving substantial and specific real estate demand. This is confirmed by the growing number of real estate occupiers within the market and an increase in the leasing of business space.
The demand for real estate comes from different types of occupiers within the Gaming-sector. For example, the developers of games are looking for office space, the demand for retail space is coming from the game shops, and game halls and e-sports are mainly taking up leisure space. However, Savills sees users are increasingly looking for locations in which they can facilitate multiple functions.
Table Large gaming-related occupier transactions
|
Guerrilla Games |
Team Liquid |
Gamestate |
Formula 1 Simulator |
Game Mania Conceptstore |
|
Central Amsterdam |
Central Utrecht |
Amsterdam Zuidoost |
Wall Utrecht |
Central Utrecht (Hoog Catherijne) |
|
2019 |
2020 |
2019 |
2020 |
2018 |
|
7,300 sq m |
1,000 sq m |
1,250 sq m |
1,400 sq m |
150 sq m |
The Dutch gaming sector has been expanding quickly in recent years. In 2014, it generated revenues of around €639 million, and by 2019 this figure had passed €1 billion (Source: PWC), a growth rate of no less than 56%. And it is not just the number of gamers in the Netherlands that is growing: the number of jobs in the video game sector has also been rising. According to Dutch Game Garden, between 2015 and 2018, the number of jobs in the sector increased by 10% every year. This growth has mirrored the increase in annual total revenues.
The growth of the gaming industry is expected to continue around the world, including in the Netherlands. The total revenue of the games industry in the Netherlands is expected to grow by 10% between 2020 and 2023. Based on this forecast, between 400 and 500 additional jobs are expected to be created between 2020 and 2023.
Jordy Kleemans, Head of Research & Consultancy at Savills in the Netherlands, explains: “In the past, games were mainly played from the comfort of one’s living room. However, this is no longer the case. The social component of gaming is becoming increasingly pronounced. Gamers want to interact. As a result, the gaming industry is driving an increasing demand for real estate, specifically in easily accessible locations of substantial size. Due to the growth of the sector, Savills expects that the number of e-sports arenas, arcade halls and conceptstores will continue to increase.”
In the Netherlands, Savills expects a clustering of multiple functions, such as an "experience store", an e-sports arena and the presence of a developer and / or educational institute in one location. Such clusters are also strongly emerging internationally. This mix of use is in line with the current global real estate trend towards ‘living, working and recreation’ - all within the same area.
IJsbrand Brunger, Head of Leasing in Amsterdam at Savills in the Netherlands, adds: “As mentioned, the demand profile of the gaming sector is very specific. In addition, the sector would need to compete with other functions at the desired locations - locations with good accessibility within city centres. Finding the ideal location is therefore not that straightforward. But it could certainly bring opportunities - in particular for investors in city centre locations, who are very likely to face rising vacancy due to the impact of the coronavirus pandemic on the Dutch retail landscape. If a gaming cluster can be encouraged in the right location, the sector could provide some very promising tenants for the future.”