Share new-build investments decreases to 31%, more investments expected
Of the total transaction volume in the first quarter, 31% was invested in new-build homes. This amounts to 267 million euros. This means that the share of new-build in the total transaction volume has fallen sharply: over the whole of 2024, this share was still 47%. The majority of investments were made by housing associations (67%) and Dutch institutional investors (16%). Investments by Dutch institutional investors are expected to increase sharply in the coming quarters, given their ambitions for the residential investment market. They have more than 12 billion euros available for investing in new rental properties over the next three years. Dutch institutional investors will focus on affordable and sustainable (mid-rent) properties.
Arjan Peerboom, CEO Capital Value: “In order to realise the investment ambition of institutional investors, it is of great importance that there are no adjustments to the indexation of rents. Generic measures such as a possible rent freeze can have major consequences for investments in new-build homes. Especially now that so much capital is available, the government should not come up with even more measures to disrupt the investment climate”.
Investment climate can benefit from cooperation of the Ministry of Finance and stability in government policy
Investors have been advocating for years for a stable government policy to enable more investments and to prevent the rental stock from decreasing. In the first quarter it became clear that privatisation of the rental market is currently faster than the number of new rental homes being added.
Thijs Konijnendijk, Director Research & Data Intelligence bij Capital Value: “The housing shortage in the Netherlands is greater than ever. What the market needs most now is to prevent rent freezes and adjustments to tax regulations. These include plans for box 3, a lower transfer tax of 6%, a possibility of higher interest deductions and adjustments to corporate tax for housing associations.. With tax improvements and stability in policy, the housing market will not only become more attractive for Dutch investors and housing associations, but also for international investors.”
