How is the Dutch real estate market developing? A market commentary by Wouter de Bever, Managing Director Deutsche Hypo – NORD/LB Real Estate Finance Amsterdam.
The construction sector of housing in the Netherlands has nearly come to a standstill. In the past, I could see numerous construction cranes from my office overlooking Amsterdam; today, there are only three. The housing shortage remains one of the significant challenges. The demand for housing is immense, and both purchase and rental prices have risen sharply in recent years. In contrast, the level of construction activity is far too low. The reasons for this are varied, ranging from climate protection regulations and limited available land to rising interest rates and lengthy approval processes. Additionally, the unpredictable policies of the new government contribute to this situation. This short-term goal-oriented approach, combined with tax regulations, has led to a withdrawal of foreign investors from the Netherlands.
On a more positive note, the retail and hotel asset classes are experiencing a gradual market recovery. This trend is also evident in the office real estate sector, where companies’ desire for employees to return to the office could lead to increased demand.
Despite the challenges mentioned, I am satisfied with our business performance thus far and look forward to the upcoming months with optimism. The PROVADA real estate fair will take place in Amsterdam in mid-June, and I am eager to engage with clients and business partners there.