Outlook for real estate
Bad debt costs at 69 basis points
The further decline in the Dutch property market led to an increase in value adjustments at
Rabo Real Estate Group to EUR 136 (57) million, which corresponds to 69 (36) basis points
of average lending.
Rabo Real Estate Group is expected to continue to suffer from the poor property market in the
years ahead. Consumer confidence in the housing market is low, because the crisis is being
exacerbated by the lack of a clear strategic policy for the housing market. House buyers have a
tendency to stay put as a result.
The property finance portfolio is not expected to grow much, if at all, in the persistently
difficult market environment. The commercial property market is suffering from an imbalance
between supply and demand, weighing down rentals and property values. Nevertheless,
investors and tenants are still interested in high-profile office locations, such as railway stations
and prime retail spots in stronger urban areas. Despite the challenging market, Rabo Real
Estate Group wants to have a presence in top locations, focusing on sustainable properties.
Knowledge of the market is paramount, especially in these uncertain times. Drawing on its
market position and expertise, Rabo Real Estate Group is perfectly placed to grasp the few
opportunities in this market.
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Annual Report 2011 Rabobank Group
