Bad debt costs at 124 basis points
Outlook for real estate
Bad debt costs rose sharply due to the continued decline in the Dutch property market.
Value adjustments at Rabo Real Estate Group stood at EUR 238 (136) million. The increase in
value adjustments was concentrated in the commercial real estate sector. Bad debt costs
corresponded to 124 (69) basis points of average lending.
The Dutch property market will initially show few signs of recovery in 2013. Consumer
confidence is expected to remain low due, in part, to government spending cuts. Corporate
expenditures are likely to fall and the unemployment rate is set to rise. The impact of the new
austerity measures will become visible in the course of 2013, but their effect on the property
market remains uncertain.The property market in the Netherlands is in worse shape than in
the countries around us. The outlook for the German property market is positive. There are
opportunities for commercial real estate to be had in new property concepts and the
revamping of areas and buildings.
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