Multiple major investment transactions in the office space completed in the city during the second half of last year with total investment volumes in 2020 increasing by 32% year-on-year.

Reinier Wegman, Head of Sales at Savills in the Netherlands, comments: “While the total take-up of office space decreased significantly in 2020 compared to 2019, by -56%, this has not impacted the investment market. Confidence among investors remains high as shown by the recent sale of Monarch Tower.”

Key reasons for investor confidence are population growth in the city and the range of new users of office space over the last years, beyond the government. As a large part of the stock – 58% in the three largest business districts –  is in the hands of the government, and because the number of developments currently planned is very limited, the vacancy rate for prime locations will not be strongly affected in the coming years. If anything, the requirements for new high quality office space remain high.

Jordy Diepeveen, Head of Acquisitions at Savills in the Netherlands, says: “Despite Covid-19, the outlook for The Hague office market is favourable. We are still expecting a population increase and a strong economy in the long term while the dependency on the government in terms of take-up is decreasing. These factors should help The Hague shake off its image as a government city, so that Dutch and international investors are drawn to it in even greater numbers.”

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