International investor interest in the Dutch residential market has mushroomed in the last two years but the supply of portfolios coming to the market has dried up.

International investor interest in the Dutch residential market has mushroomed in the last two years but the supply of portfolios coming to the market has dried up.

Last year two big residential portfolio sales were announced during the Provada real estate fair in Amsterdam. The big question on everyone's lips at this year's fair is where product can be found to satisfy the huge pool of equity available for investment in the sector.

This is a far cry from the situation before the global financial crisis, Marcus Cieleback, head of research at Patrizia Immobiliën, told PropertyEU's residential investment briefing on Tuesday, on the first day of the Provada fair.

'Five to six years ago there was no thought of a residential institutional investment market in most European countries due to high ownership levels ,' Cieleback told the briefing. Following the global financial crisis of 2007-8 it is now more acceptable for people to rent.

Social, rent controlled-housing was and still is an important feature of the Dutch and German markets, a factor that has also limited investment opportunities.

Cieleback noted efforts by Dutch housing minister Stef Blok to liberalise the rental market and stimulate asset sales by the social housing corporations has been only partly successful. Patrizia and London-based Round Hill capital have both carried out large portfolio acquisitions in the Netherlands.

But the briefing heard that housing corporations no longer feel pressured by regulatory changes to sell off big portfolios.

Cieleback's fellow panellists indicated a willingness to expand their strategic horizons to locate good investments both in the Netherlands and across Europe.

Tim Phillips, director at Lothbury Investment Management, said former industrial sites in sub-metro areas near urban centres in the UK could be an option. Boris van der Gijp, director of strategy & research at Dutch investor Syntrus Achmea, outlined the ABBA strategy: acquiring A properties in B locations or B properties in A locations.

Robbert van Dijk, managing director of residential at ASR Real Estate Investment Management, said due to means testing there was more demand among consumers who were formerly in social housing for private sector rental homes in the €700-plus a month bracket.

Cieleback also suggested that smaller cities with demographic growth offered good opportunities, with the ability to sell unit-by-unit or to local wealthy investors offering the security of exit required.