Private investors and housing associations have the largest share in the transaction volume
Of the total transaction volume of 2.8 billion euros, only 786 million euros were invested in new-build rental properties. A total of 11,000 rental properties were sold, of which 3,300 were new. Private investors accounted for 54% of the transaction volume, followed by housing associations (18%) and institutional investors (14%). Buying existing rental properties is attractive to private investors due to the strong price increases on the owner-occupied housing market. Housing associations mainly invest in new build: 82% of the purchases by housing associations concerned investments in new rental properties. The interest of international investors in existing rental properties has increased, but they still invest much less in new-build than in previous years. The share of international investors amounted to 21% in the first half of the year, while they were only responsible for 8.7% of the investment volume in new rental properties. In previous years, the share of international investors was usually around 30%.
More investments in new-build expected
Although the investment volume in new-build decreased from 1.4 billion in the first half of 2024 to 786 million in the first half of 2025, there is a great deal of interest in new-build rental properties. An inventarisation by Capital Value shows that institutional investors are currently completing around 3 billion euros in new-build transactions. If all these transactions go ahead, the investment volume in new-build could reach 4 to 5 billion euros in 2025, which is higher than in 2024. The interest in new-build comes mainly from Dutch institutional investors who want to invest in sustainable and affordable rental properties with impact funds.
Improvements in investment climate needed to meet housing construction targets
Even if the investment volume in new-build rental properties exceeds the 2024 level, it will not be enough to meet the housing construction targets. In 2024, a total of 82,000 rental and owner-occupied properties were added through new-build, transformation and divisions, while this should have been 100,000. Currently, the number of building permits issued has been showing a downward trend for months, with the current 12-month total of permits currently standing at 63,300 (figures up to and including April). If this trend continues, it is possible that only 56,000 permits will be issued in 2025. Making the investment climate attractive for investors who are not yet investing in this market is therefore necessary. Investments by international investors in particular can be increased by relaxing tax regulations and providing clarity on rental market policy.
Arjan Peerboom, CEO Capital Value: “We see that investments by international investors have been below the desired level for years. We therefore advocate a boost for these investors, for example by lowering transfer tax or by aligning the tax treatment of Dutch and international institutional investors. In addition, the investment climate benefits from structural stability in the rental policy. We therefore call on politicians in The Hague to provide that stability by communicating a long-term vision for the Dutch residential investment market.”
