Take-up volume in the first half of 2021 increased by 5% compared to 2020, and also by 5% compared to the first half of 2019.

However, the differences between real estate sectors are marked, with some showing growth while others are contracting. Savills said that leasing deals in the logistics sector were mainly responsible for the overall growth in take-up during the first half of this year, but that take-up volume in logistics increased by a staggering 44% compared to the same period last year.

Niek Poppelaars, co-head of Logistics & Industrial at Savills in the Netherlands, explains: “There are two aspects to this impressive expansion. Firstly, the volume of international trade in the Netherlands has already surpassed pre-pandemic levels. Secondly, Covid-19 has accelerated the growth of e-commerce.”

Take up in the retail market, by contrast, declined by 4% compared to the first half of 2020. This was partly because of a drop in household consumption, with the closure of hospitality and non-essential stores meaning that many retailers generated lower sales during lockdown. The absence of foreign tourists and the increase in online purchases are other reasons for this decline.

The take-up volume for office space was 31% lower in the first half of 2021 than it was in the second half of 2020. Despite this substantial decline, demand recovered during the last quarter: up 19% compared with the first quarter of this year.

One striking observation is that current renegotiations of expired contracts have not revealed a tendency towards downscaling. In other words, at present companies do not seem interested in shedding substantial amounts of office space.

Ellen Waals, head of agency at Savills in the Netherlands, says: “Although almost all companies seem to be re-examining how they use their offices, recent surveys among both lessors and occupiers reveal a continued commitment to physical office space.”

Waals confirmed that 87% of employees in the EMEA region still see the physical office as a necessary part of their operations. Savills research also highlighted various activities that employers preferred to carry out in the office, as opposed to home. Working with colleagues, career development, networking, guidance and team management, were all cited as aspects of working life that are best supported by the workplace.

But employees did indicate that they want greater flexibility to work at different locations. Based on the number of search requests by companies and the recognition that the traditional office remains crucial, the office market is expected to continue its recovery in 2021, said Savills.

Jordy Kleemans, head of research & consultancy at Savills in the Netherlands, concludes: “The more activity there is among occupiers, the more interested investors there will be. Assuming that the recovery of occupier markets continues, we can expect greater investment in these sectors in the coming six months than there was in the first half of the year.”

Read the full report here.