National spatial planning policy and the functioning of property markets

The aim of the study was to establish the effects of national spatial planning policy on the functioning of both office and retail property markets between 1960-2016 in the Netherlands. These submarkets have similar structures and dynamics. Of significance is the dual character of property markets (rents) and asset markets (value) as well as the lack of reliable market and price information. Gradually, a structural surplus arose in the office market whereas the retail market has developed in a more stable manner.These differences are related to differences in national spatial planning policy. In the office market the considerable demand for property investment was facilitated by a generous supply of building locations. This was caused by a combination of features that typify the Dutch spatial planning. Significant are the strong position of municipalities and the limited willingness of provinces and national government to intervene. Municipalities are free to develop office locations as they see fit. The tradition of public land development and the competition between municipalities contributed to a generous allocation of space. For retail property on the other hand, ever since the seventies new development was regulated by effective planning measures. Therefore, the supply of new retail space was more in tune with demand than was the case for office property. One of the recommendations of this study is to assign the regulation and coordination of local spatial investments to the provinces