International and private investors remain largely absent from the Dutch new-build market due to a combination of fiscal pressure, interest rate levels and rent-regulating measures. Despite the high level of investment in 2025, the rental housing stock in the Netherlands continues to decline. This is because investors sold off approximately 26,000 more homes than they acquired during the first three quarters of 2025 (source: Kadaster).
Selling off more attractive than continued rental
In 2025, approximately 17,000 existing rental homes were acquired by investors, the majority of which are likely to be sold off to owner-occupiers. Under current market conditions, selling off rental homes is far more attractive for investors than continuing to rent them out. This is driven by high fiscal burdens, such as elevated transfer tax, rent regulation under the Affordable Rent Act (Wet Betaalbare Huur), and strong price increases in the owner-occupied housing market. Existing rental homes do not disappear from the rental stock all at once, but Kadaster figures show that the pace at which this occurs cannot be offset by investments in new-build rental housing.
Thijs Konijnendijk, Director Research & Data Intelligence at Capital Value:
“The fiscal difference between selling a rental home to an investor or to a private buyer has a significant impact on value. Private buyers pay only 2% transfer tax, or none at all, while investors face 8% (as of 1 January), box 3 taxation and restrictions on interest deductibility. This combination deserves attention, as it incentivises selling off rental homes and threatens the flexible segment of privately owned rental housing within the overall housing stock.”
Available capital for the residential market grows by 12% to €21 billion
Capital Value’s annual survey among domestic and international investors shows that investors have €21 billion available for investments in the Dutch rental housing market over the coming three years. This represents an increase of 12% compared with the 2024 survey. While the growth in available capital is a positive signal, substantially more capital is required to have a meaningful impact on the housing shortage.
Arjan Peerboom, CEO at Capital Value:
“Dutch institutional investors made substantial investments in new rental housing in 2025 and intend to continue doing so in the coming years. Whether this will be possible depends on a favourable investment climate, sufficient supply and efficient permitting procedures. To successfully address the housing shortage in the Netherlands, significantly more capital is needed. The investment climate for international investors and the financial health of the housing association sector are key areas of concern. Both have come under considerable pressure in recent years, at a time when every effort should be made to enable these investors to contribute sustainably to the housing market.”
