The volume of new office developments in the Netherlands fell -30% in 2008 compared to 2007 while the number of building permits for new offices plunged by almost half, according to an annual survey of the Dutch developers association Neprom in conjunction with PropertyNL.

The supply of new office space totalled nearly 900,000sqm in 2008. However, at the beginning of January 2009, a total of 2m sqm of office space was under development, most of which will come onto the market this year and next. From 2011, new production will shrink significantly, according to the survey.
Neprom expects that from that date, new office supply will average 200,000sqm a year. Pressure to renovate and upgrade the existing supply will grow as a result, predicted Neprom.

The market for new retail developments has also been hit hard by the financial crisis as well. In 2008, some 320,000sqm in new retail space was delivered, but this is expected to fall significantly after 2010. For this year and 2010, Neprom expects new retail supply to total 400,000sqm.