Commercial Real Estate - Benelux

Benelux

The Commercial Real Estate market market in Benelux is expected to reach a projected value of US$1.97tn by 2024.
This market segment is anticipated to display an annual growth rate (CAGR 2024-2029) of 2.14%, leading to a market volume of US$2.19tn by 2029.
In terms of global comparison, the United States is set to generate the highest value in the Real Estate sector, with an estimated worth of US$25,280.0bn by 2024.
The Commercial Real Estate market in Benelux is experiencing a surge in demand for sustainable office spaces.

Key regions: Europe, France, Japan, Brazil, Asia

Market

Region

Region comparison

Currency

Analyst Opinion

The Commercial Real Estate market in Benelux is experiencing significant growth and development.

Customer preferences: Customers in the Commercial Real Estate market in Benelux are increasingly seeking modern and flexible office spaces. They are looking for properties that can accommodate their changing needs, such as open-plan layouts, collaborative spaces, and advanced technology infrastructure. Additionally, sustainability and energy efficiency are becoming important factors for customers, as they prioritize environmentally friendly buildings.

Trends in the market: One of the key trends in the Commercial Real Estate market in Benelux is the rise of co-working spaces. This trend is driven by the growing number of startups and small businesses in the region, as well as the desire for flexible working arrangements. Co-working spaces offer cost-effective solutions for businesses that do not require a traditional office setup and provide opportunities for networking and collaboration. Another trend in the market is the increasing demand for mixed-use developments. Customers are looking for properties that combine commercial, residential, and retail spaces in one location. This trend is driven by the desire for convenience and the need to create vibrant and dynamic communities.

Local special circumstances: The Commercial Real Estate market in Benelux is influenced by the unique characteristics of each country in the region. For example, in the Netherlands, there is a strong focus on sustainable development and green building practices. This is reflected in the demand for energy-efficient buildings and the implementation of strict environmental regulations. In Belgium, there is a strong presence of international organizations and institutions, which drives the demand for high-quality office spaces. The country's central location in Europe also makes it an attractive destination for businesses looking to establish a presence in the region.

Underlying macroeconomic factors: The growth and development of the Commercial Real Estate market in Benelux can be attributed to several underlying macroeconomic factors. Firstly, the region has a stable and prosperous economy, which attracts both domestic and international businesses. This creates a strong demand for commercial properties. Secondly, low interest rates have made it more affordable for businesses to invest in real estate. This has led to an increase in property transactions and the development of new projects. Lastly, the Benelux countries have a strategic location within Europe, making them attractive for businesses looking to expand their operations. This has resulted in a growing demand for commercial properties, especially in major cities such as Amsterdam, Brussels, and Luxembourg. Overall, the Commercial Real Estate market in Benelux is experiencing growth and development due to customer preferences for modern and flexible office spaces, the rise of co-working spaces, the demand for mixed-use developments, and the unique characteristics of each country in the region. These trends are supported by the underlying macroeconomic factors of a stable and prosperous economy, low interest rates, and a strategic location within Europe.

Methodology

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.