Urban landscapes are being slowly transformed as population growth continues to converge on the thriving, major cities of the Netherlands. A new research report from Savills describes the pivotal role of urbanisation in shaping the country's economy and real estate markets.
The report delves into the profound impact of urbanisation on the Dutch real estate sector and analyses its self-reinforcing effect because of an increase in employment figures, immigration and a rise in facilities. This growth has bolstered the appeal of these cities and strengthened their dominant position as centres of economic and social activity. For instance, the number of households in several urban regions will grow by more than 15% between now and 2050, which will have a major impact on local property markets.
Urbanisation is forecast to remain an overriding force, exerting its influence on the choices made by occupiers across various real estate sectors. According to Raymond Frederiks, the Market Intelligence Analyst behind the report, "The combination of economic vibrancy and the urban lifestyle allure will maintain population migration towards the Netherlands' urban hubs. This will fundamentally shape real estate dynamics, dictating the spatial preferences of businesses and residents."
While the appeal of urban living continues to be attractive, the report also highlights the challenges this entails, for example in terms of housing affordability but also a growing lack of a sense of community. This tension is poised to drive the emergence of innovative housing solutions, including co-living schemes, which may pave the way for novel ways of communal living.
The study further reveals that inter-generational preferences could shape future real estate demand, which may also influence where businesses locate. For example, the research highlights a strong inclination among Millennials and Gen-Zs for mixed-use neighbourhoods characterised by walkability and access to high quality amenities. This preference is expected to encourage both businesses and residents to choose locations that offer this lifestyle.
As the Dutch real estate landscape evolves in response to these dynamics, the report emphasises the importance of understanding demographic impacts. According to Raymond Frederiks, "Companies, governments and investors armed with a deep understanding of demographic shifts will be better placed to navigate property markets, identifying new, favourable opportunities as well as less advantageous sectors."
About the report
Savills first Summer Special explores three future disrupters of Dutch Real Estate: Decarbonisation, Demographics, and Digitalisation. This press release is about chapter 1 - decarbonisation. Click here to read the full report.