We expect that these tendencies will be continued in 1979. The rate
of sale in several categories of dwellings has diminished
considerably and in various local markets the prices of houses
have dropped. In the West of the country these price cuts have
been limited as a result of the relative housing famine and the still
increasing building-costs. We consider it possible that in the course
of 1979 there will be a stabilisation in the prices of houses,
certainly in the Conurbation of Holland. The Government should
then take care, however, that a market recovery is not counteracted
by a heavier fiscal burden in private houses.
In the commercial sector there are indications for 1979 of a slight
improvement in the situation. This might mean that the non
occupancy of well-equipped, up-to-date offices will further decrease
in our large cities in 1979. In the market for industrial halls the
existing supply will not be absorbed by the market until in the
course of a few years. A slightly rising need of finance in the
commercial sector is, we think, within the range of possibility.
Considering the above factors it should be taken into account that
in 1979 the mortgage production will lag behind the high level
of the previous years.
Real estate
The year under review was characterized by a further increase in
the demand for well-tenanted investment objects on the part of
institutional investors and also individuals; the increase of funds
to be invested in this sector and the slender possibilities for
investment encouraged further price increases.
The stagnation in the demand of users for commercial premises
was maintained.
The demand for good offices showed a gratifying growth. Because
the accessibility and parking facilities in the city centres are
frequently inadequate also in the long term, the demand - as
already recalled on previous occasions - centres on locations on
the edge of the built-up area with ample parking facilities and
good public transport to the centre. Partly due to a lack of these
facilities a tendency has become noticeable of late that - unlike in
former days - companies follow the workers. Sleeping-cities, such
as Zoetermeer and others, thus become residential and
working-cities.
In order to make the best possible use of the developments in the
real estate market in the Netherlands and preparatory to a
continuing internationalisation we have carried through in our
organisation an integration of the operation sector and the real
estate development sector during the financial year.
During the year under review a start has been made with the
development of and investment in real estate outside the
Netherlands and Belgium. The starting-point in the policy abroad
is to launch projects in co-operation with local partners or with
partners with local know-how.
In Germany we participate in a shopping-centre to be realized in
Ebingen and in a leased office-building in Hamburg. In France
a start has been made in co-operation with others with a block
apartments for resale at St. Raphaël on the Cöte d'Azur; further-
18
