Dutch residential investors will invest €3.6 billion in new-build rental housing in 2025. Analysis by Capital Value shows that these investments will deliver approximately 10,500 new rental homes in the coming years. Of these, 77% will be mid-rental and social rental housing, demonstrating that Dutch investors aim to contribute to reducing the housing shortage by adding affordable rental supply.
The annual figures on new-build investments by investors were presented to Minister Mona Keijzer on the ‘Dag van de Volkshuisvesting’.
In the photo: Marijn Snijders, Mona Keijzer, Arjan Peerboom and Thijs Konijnendijk.”
The high investment volume is driven primarily by increased activity among Dutch institutional investors, who invested a record €3.3 billion in new-build rental housing. Despite these strong investment levels, the rental stock continues to shrink due to sales from existing portfolios. The new government will therefore need to introduce additional measures to improve the investment climate.
With €3.6 billion invested in new-build rental housing, the investment volume has doubled compared with 2024, when €1.8 billion was committed. The sharp increase is the result of a large number of transactions by Dutch institutional investors. Guided by their impact strategies, they invested predominantly in affordable rental housing: of the roughly 10,500 homes added by investors, 59% are mid-rental units and 18% social rental units. These figures do not include investments by housing associations, meaning the actual expansion of the rental stock in 2025 will be even greater.
Some 89% of investments in new-build rental housing were made in the Randstad provinces of North Holland, South Holland and Utrecht, where around 9,300 new rental homes will be added. Of these, 57% are mid-rental units and 20% social rental units. In the G5—the five largest cities—investments totalled €2.4 billion. At the municipal level, the share of mid-rental and social rental housing varies considerably due to targeted investments in, for example, student housing. On average, the share of mid-rental housing in the G5 amounts to 60%. Randstad locations continue to attract investors due to the presence of large target groups and expected population growth in the coming decades.
International investors were noticeably absent from new-build investment activity. Only 1% of the transaction volume came from international investors, compared with 32% in 2022. This shows that despite the substantial commitments made by Dutch institutional investors, improvements to the investment climate remain essential. Housing production targets cannot be met without the involvement of international investors, yet the Dutch residential investment market is currently not sufficiently attractive to them. Dutch private investors could also contribute to the delivery of new rental housing, but the fiscal environment is unfavourable. As a result, many private investors are currently selling units from their portfolios, causing the rental stock to decline despite strong new-build investment.
Thijs Konijnendijk, Director Research & Data Intelligence: “Investment in new-build has increased, which is positive. However, the targets for expanding the rental stock in the Netherlands are still not being met. It is therefore crucial that the new government introduces stable, enabling policies for investors. Investment volumes will grow further if the transfer tax is reduced to 6%, interest deductibility is broadened and the tax burden in Box 3 is lowered.”
In addition to fiscal measures, investment by international and Dutch private investors can be encouraged by ensuring stability in rental policy, avoiding rent freezes, shortening (legal) procedures and preventing overlapping national and local regulation. Currently, party programmes and coalition negotiations show too little focus on the rental housing market, leaving part of its potential untapped.
Arjan Peerboom, CEO: “Dutch institutional investors have at least the same amount available for investments in the Dutch rental market in 2026 as in 2025, but projects must remain financially feasible. We therefore strongly encourage municipalities to make active use of the announced ‘Realisatiestimulans (Realisation Incentive) to improve the feasibility of new-build projects, and to prioritise rental housing for seniors to improve mobility within local housing markets.”
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