Outlook

The Netherlands is certainly no exception when it comes to increasing regulation in the residential and rental market.

Other examples in Europe show that where there is great scarcity, attempts are made to limit increases in house prices through regulation. This provides more certainty for tenants, but also uncertainty for investors and developers: after all, it is unknown which rules will continue to apply for a longer period of time. Combined with inflation and rising interest rates at the moment, this has increased the uncertainties of residential investments.

Despite these uncertainties, the Dutch housing market still remains appealing for investment

Despite these uncertainties, the Dutch housing market still remains appealing for investment, particularly for investors with a core strategy, and especially if the “rules of engagement” are clear for investors and remain valid for a longer period of time. This will apply mostly for larger Dutch core investors with a strong domestic focus and expertise on how to adapt to regulation, while foreign investors are more likely to divert their attention to other markets. We therefore see an important shift to core investors in the investment in mid-segment and social housing by (core) investors: with a secure cash flow and predictable cash flow development, this still provides a very stable form of real estate investment. Savills thus still sees locations in the Netherlands that lend themselves strongly to residential investment, but investors will have to remain innovative in the current tight market in order to continue to find opportunities, with or without data-driven solutions, in the search for the ideal risk-return profile.

Sources Statistics Netherlands, Eurostat, Savills Research, Citizens Information Board Ireland

Savills World Research We provide bespoke services for landowners, developers, occupiers and investors across the lifecycle of residential, commercial or mixed-use projects. We add value by providing our clients with research-backed advice and consultancy through our market-leading global research team

Bas Wilberts

Director Investment

+31 20 301 2000

b.wilberts@savills.nl

Ronald Koemans

Director Investment

+31 20 301 2000

ronald.koemans@savills.nl

Martijn Onderstal

Director Valuation

+31 20 237 9955

martijn.onderstal@savills.nl

Raymond Frederiks

Consultant Reseach & Consultancy

+31 20 237 9906

Raymond.frederiks@savills.nl

Savills plc: Savills plc is a global real estate services provider listed on the London Stock Exchange. We have an international network of more than 600 offices and associates throughout the Americas, the UK, continental Europe, Asia Pacific, Africa and the Middle East, offering a broad range of specialist advisory, management and transactional services to clients all over the world. This report is for general informative purposes only. It may not be published, reproduced or quoted in part or in whole, nor may it be used as a basis for any contract, prospectus, agreement or other document without prior consent. While every effort has been made to ensure its accuracy, Savills accepts no liability whatsoever for any direct or consequential loss arising from its use. The content is strictly copyright and reproduction of the whole or part of it in any form is prohibited without written permission from Savills Research.

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