Market Information Tuesday 30 March 2021

The corona pandemic may have serious consequences for the demand for commercial real estate, such as office space and retail shops, the International Monetary Fund (IMF) warns. Working from home and online shopping have shown that physical shops and offices are less necessary. As a result the demand and therefore prices of commercial real estate may not return to pre-pandemic levels. This may have implications for financial stability, as loans for commercial real estate account for a significant part of banks’ loan portfolios in many countries.

Dutch rental prices increased in the last quarter of last year, despite a price decrease in large cities. According to broker association NVM and real estate organisation VGM NL, demand still exceeds supply in the market. In the last three months of 2020, residential properties were on average over 4% more expensive, measured per square meter of basic rent.

Output prices in Dutch industry were on average 0.6% higher in February 2021 than a year before. Figures from Statistics Netherlands (CBS) show that prices increased for the first time on an annual basis since the pandemic started in March 2020. According to the CBS, this is mainly the result of the recovery of oil prices.

The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap increased with 3 basis points to 0.05% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.