Key market developments | Underlying aspects | Implications | Opportunities |
Strong demand for Dutch investments | • | Economic outlook for the Netherlands has improved strongly | • | Investment and liquidity in residential real estate investment market is at its highest point since the onset of the 2008 crisis | • | Stable and attractive returns |
• | Fundamentals for the Dutch residential market have recovered swiftly | • | The continuing interest has resulted in yield shifts, pushing up prices |
• | Dutch markets still attractively priced compared to other key markets | • | Sub-prime markets will develop in line with top of the market in the near future, albeit to a lesser extent |
Changing demographics | • | Quantitative gap - Urbanisation. Population growth and the increase in the number of households | • | The resultant gap between supply and demand will continue to put pressure on the market |
• | Qualitative mismatch - Single-person households and elderly are changing the market | • | Starters will be looking for good quality rental property |
| | | • | Increasing demand for so-called lifecycle-proof housing developments |
Government measures in favour of rental market | • | Housing associations are more focused on their core task | • | A more level playing field |
• | Phased reduction of tax relief on mortgage interest | • | Demand for liberalised rental homes is expected to double in the next thirty years |
• | Fewer people are willing or able to enter the owner-occupier market | | |