International investors are showing a strong interest in the main Dutch office markets, resulting in net yields being driven downward to between 5.3% and 5.7%, according to research released by Savills.

The office markets of Rotterdam and The Hague recorded investment turnover for EUR 80 mln and EUR 107 mln respectively in the first half of 2011.

Investment in Amsterdam was in line with last year's figures at EUR 200 mln but Utrecht's total of EUR 67 mln was slightly lower.

The international real estate advisor reports that the yield gap between prime and secondary office locations has widened to 100 basis points (bps) in Rotterdam, 130 bps in Utrecht, 150 bps in Amsterdam but the widest gap of 170 bps was recorded in The Hague market.

Jeroen Jansen, head of research at Savills Netherlands, said: 'The Hague office market in particular showed promising figures with investment volumes increasing 9% but occupier demand jumped to 34%. However, we expect overall figures for the occupier market to remain stable in the second half of the year - the challenge of oversupply continues.'