73 percent of Dutch private investors expect limited impact COVID-19 crisis on residential investment market
8 april 2020
Research from Capital Value conducted in early April, in which nearly 100 Dutch private residential investors participated, shows that a large majority of investors expect the impact of the COVID-19 crisis on the Dutch residential investment market to be limited. In addition, 54% indicate not to postpone any investments due to the crisis. Private investors play an important role in the Dutch residential investment market and accounted for one third of the total transaction volume in 2019.
68% see Dutch residential market as a robust market
The majority (68%) of the investors who indicate to not postpone investments say that they see the Dutch residential investment market as a robust market and that the forecasts for the long-term are good. In addition 50% of this group also sees the current market as an opportunity. Of the total number of investors surveyed, 46% indicate that they do postpone investments. For a large majority of this group, uncertainty about the duration of the crisis is the main reason for this.
Consequences for current residential portfolios
When asked about possible consequences for the current residential portfolio, half of the investors surveyed indicate that they do not yet experience any differences. 31% receives more tenant requests for rent deductions or deferral. A quarter indicates that letting in the higher segment is more difficult.
Marijn Snijders, managing director Capital Value: "Private investors have played a very important role on the Dutch residential investment market for more than 20 years. A large part of private investors invest with their own money and they are therefore less dependent on external financiers. After the previous crisis in 2008, it were the private investors that continued to invest in Dutch rental homes. In the past weeks, we have seen that a large number of private investors continue to place bids on portfolios that are currently on the market".
Also read: 89% of Dutch housing associations continue new-build project despite Coronavirus crisis