Interest among international investors for rented housing in the Netherlands has skyrocketed, according to a study by Capital Value that was presented at the Dutch Embassy in London on Wednesday.
Interest among international investors for rented housing in the Netherlands has skyrocketed, according to a study by Capital Value that was presented at the Dutch Embassy in London on Wednesday.
More than 35 of the key investors from the US, the UK, Germany and the Middle East attended the presentation that was organised in collaboration with the Dutch Ministry of the Interior and Kingdom Relations.
As part of this research, over 200 international real estate investors based in North America, Asia, the Middle East and Europe who operate in the European real estate market were approached. Of these investors, 168 have already made cross-border investments in European residential real estate or are investigating this option. Between them, they hold €276 bn of capital investments, more than €28 bn of which are invested in housing. For the study, interviews were held in London, New York, Frankfurt, Munich and elsewhere.
Of the investors surveyed, 23% are interested in purchasing Dutch rented housing. Such international interest in Dutch housing investment is a new development as for several decades thethe market was fully dominated by Dutch investors.
Of the foreign investors intending to invest in the Netherlands, 29% are actively pursuing purchases, and 25% of them are already evaluating portfolios. The first large transactions are expected to take place in the near future.
In contrast to just a few years ago, when cross-border investments in rented housing were primarily restricted to the German market, investors are now increasingly turning their attention to other countries. Over the past two years, large cross-border transactions took place in the UK and Scandinavia, with Denmark proving particularly popular. That popularity now seems to have shifted to the Netherlands.
The research reveals that the Netherlands holds a solid third place - after Germany and Scandinavia - in a list of European countries, where international investors are considering investing in the coming years. Investors see extra potential in the Netherlands due to the decline in the purchase prices of homes and the expectation that the market will start improving again.
Alexander van der Laan, Capital Value real estate advisor based in London: 'Many investors compare the Netherlands with Germany in the early 2000s. Due to the huge rise in prices in Germany over the past few years, investors are now recognising that better returns can now be realised in the Netherlands. Increasing numbers of foreign parties see opportunities in the housing shortages that are threatening to hit the Dutch housing market and the high risk-return profile'.