12/02/2021 | Press release | Distributed by Public on 12/02/2021 09:25
The international real estate advisor identified the Netherlands capital as the highest riser in its latest Savills European Fintech Occupier Index - placing Amsterdam fourth, up from tenth place in 2020.
Fintech companies, which create technology designed to improve and automate the delivery of financial services, are increasingly gaining traction with consumers and businesses to best manage their financial operations, disrupting the traditional financial services landscape. In the last three years, the proportion of European consumers which plan to use digital banking exclusively has increased from 49% to 62%.
IJsbrand Brunger, head of office leasing at Savills, Netherlands, said: "In Amsterdam there are a couple of very big local players with international coverage, like payment process platforms Mollie and Adyen that are growing so fast that they're doubling their office space requirements in just a couple of years' time."
Brunger added that these occupiers were now broadening their services in Amsterdam since being enabled to access banking licences from the Dutch Authority for the Financial Markets. In recent weeks Savills advised Union Investment on a lease agreement with cryptocurrency exchange platform Bitvavo for 2,500 sq m office space at 271-287 Keizersgracht.
In September Modulr announced it was opening a Netherlands office as a springboard towards EU-based expansion.
Mike Barnes, Associate, European research, explained: "The Netherlands is considered by these occupiers as having an attractive business environment and strong demographic growth in future years."
Office rents in Amsterdam are currently €450 per sq m compared with the other top four fintech locations. Rental costs in London, the top city in the index, are €1,449 per sq m); €920 per sq m in Paris and are €496.8 per sq m in Berlin.
Fintech occupiers are concerned with attracting the best talent at cost effective prices, as employee costs account for approximately 55% of a business' total costs, according to estimates from the BCO. The average cost of a software developer is €52,400 a year, while it is €67,200 in Munich and €100,000 in San Francisco, according to data from Glassdoor and Payscale.
Venture capital investment into the sector across the region was €20.4bn during the first three quarters of 2021, compared with just €7.57bn in 2020, up from €0.25bn in 2012. But Barnes said that green financing was "contributing to overall fintech growth across Europe".
Green financing is structured finance designed to ensure good environmental outcomes, and is typically linked to projects around renewable energy, pollution prevention, biodiversity conservation, circular economy initiatives and sustainable use of natural resources.
Amsterdam has been ranked as the greenest global financial market, according to the Global Green Finance Index, while London was third. Barnes adds that green loans are a draw for businesses and lenders and would therefore be a factor in the occupational decisions of green fintech companies.
Meanwhile, the report identifies Stockholm - up one place from 9 to 8 in the 2021 index - as another key market to watch in the coming months. The city's fintech sector is booming, following major investment by banks in the sector, attracting €4.4bn of venture capital funding in the past five years. Klarna, for instance, has been steadily increasing its footprint in Stockholm's CBD.
Maryrose David, Head of Research, Sweden, said that fintech occupiers are impacting prime rents in the CBD as these occupiers are willing to pay for the right locations. "Stockholm is also one of the most popular destinations in the world for workers in the fintech industry, as it is the country where job candidates in the sector are most willing to reposition," she added.