Hoofddorp investment volume doubles in 2017, Savills

According to the research report 'City Special Hoofddorp offices' published today by Savills,  the volume of investment into the city increased from € 158 million in 2016 to a total of € 313 million in 2017. Approximately 73% of this investment activity  can beattributed to foreign investors.

Savills also recorded that the occupier market in Hoofddorp recorded a strong year, with a take up of 50,000 sq m in 2017, driven by major lease agreements such as Asics (11,000 sq m) and Danone (8,350 sq m). Multinationals main reasoning to opt for Hoofddorp are the attractive international business climate and the strategic location close to Schiphol. The growth of the occupier market is largely explained by the fact that Hoofddorp is currently undergoing enormous development. In Beukenhorst West, obsolete office space is withdrawn from the market and transformed into homes, and in Beukenhorst Zuid the sustainable office park Park 20 | 20 has been developed in recent years according to the Cradle to Cradle principle. A consequence of the increased demand is that rental prices are rising.

Mans Vroom, Associate Director, Savills Agency team in the Netherlands , says: "It is striking that the investment volume doubled in 2017 compared to 2016. In addition, rents have risen back upto pre-crisis levels. Hoofddorp is becoming increasing popularwith occupiers and investors alike. We therefore expect that the investment volume will continue to rise throughout 2018 and that more multinationals will locate to Hoofddorp, now that Amsterdam is becoming saturated."

Jordy Kleemans, Head of Research & Consultancy at Savills: "After the crisis, the popularity of Hoofddorp initially increased among occupiers. Due to the improving occupier market, the investment market in Hoofddorp has also shown an upward trend since 2013. As a result of the growing demand the gross initial yield in Hoofddorp has been compressing. Currently the gross initial yield stands between 5% and 6% compared to 9% in 2012."

Download the full report here.