Direct investments in real estate accounted for €15.3bn of Dutch pension funds at the end of the third quarter of 2009, the equivalent to 2.4 per cent of their total investments.

Dutch real estate makes up as much as 98.5 per cent, upwards of €15bn, of these real estate investments, and the foreign share is largely accounted for by US real estate.

The volume of investments in real estate by Dutch pension funds has altered extensively since 2006. Between 2006 and the third quarter of 2007, the volume of the investments in real estate expanded by €3.2bn, which could, De Nederlandsche Bank said, be attributed to value growth of real estate by close on €5bn. In the same period, net sales came to €1.7bn.

In the third quarter of 2007, however, the total volume of real estate declined, which reflected both sales and losses in value. However, as of the fourth quarter of 2007, investments in housing were disposed of for just under €1bn, and a loss in value of €1.3bn was recorded.

From this time to the third quarter of 2009, pension funds made net purchases of office buildings amounting to €0.6bn, and the capital loss on office premises came to €1.8bn.

This brought the ration between investment in housing and in offices to 54-46 per cent, compared to 60-40 per cent at the start of 2006. The total real estate portfolio for pension funds saw a drop of €3.5bn, to €15.3bn.

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