COVID-19 and the Dutch residential market
23 maart 2020
The coronavirus (COVID-19) pandemic is affecting people all over the world and far-reaching health and safety measures are taken by governments. At Capital Value the wellbeing of our people, clients and their families is our priority. Therefore we have taken various precautionary measures to take no risks, also for society at large. It is a fact that during this unprecedented period we will see each other less. Despite the temporary measures, we want to assure you we will still do our utmost to provide our clients with the best possible service.
In uncertain times like this we make sure we have up-to-date knowledge about what is going on in the short-term and what the longer-term expectations are for the Dutch residential investment market. On a daily basis we have contact with our extensive network of sellers, buyers and stakeholders on the Dutch market. Also we have extensive knowledge of recent transactions and valuations and use the data from our continuous research of the Dutch residential investment market.
Dutch residential investments provide a stable direct return
The Dutch residential investment market is a robust market and offers investors a stable cash flow, even in uncertain times. We therefore expect investors to continue to invest in affordable rental homes. Even after the credit crisis in 2008, the direct return remained stable at approximately 4%.
Financial measures Dutch government
The Dutch government announced extensive measures last week to provide more financial stability and to help entrepreneurs affected by the corona pandemic. Below please find a summary of these measures:
• Financial help for employers to help pay their employees' wages.
• Help to SMEs that are affected by the coronavirus with secure bank guarantees and bridge financing.
• Self-employed professionals can apply for an extra, temporary benefit for self-employed professionals soon.
• A set compensation of EUR 4.000 for businesses in the hospitality, travel and event organisation sectors
• Payment extension for income tax, corporate tax, payroll tax, and turnover tax (VAT).
Given the developments follow each other quickly, please contact Clemens van Vuurde or Esther Murk from our International Desk for any questions you may have. We can be reached by email, phone or videocall.
Do not hesitate to reach out to us personally with your questions or concerns. We are happy to give you an update and are also interested in learning more about the challenges you are dealing with. Stay healthy, stay safe and stay in touch.