Dutch housing minister Mona Keijzer has finalised a list of 20 locations where housing construction can be accelerated, with another four under review, in an effort to meet the target of 100,000 new homes a year.

At least 2,500 homes will be built at each of the breakthrough sites, and five of them are expected to have a construction agreement in place before the end of the year. Construction must begin on all 24 locations by 2030 at the latest, the minister told MPs in a briefing.

The sites, the ministry said, are expected to deliver around 150,000 new homes in total. Most are located in Noord- and Zuid-Holland, Brabant and Flevoland.

Housing summit

The new approach is part of the agreement made at last December’s housing summit between national and local government, housing associations and the private sector.

That meeting aimed to speed up building by improving cooperation, cutting planning procedures and streamlining decision-making. The 24 selected locations are seen as having the greatest potential to move quickly under this strategy.

“By designating these breakthrough locations, we are putting the housing summit agreement into action,” the minister said. “Both the private sector and the government agree that we need to build faster to help people in need of a home.”

NEPROM support

The agreement shows developers “truly want to accelerate the process,” said Ronald Huikeshoven, chairman of developers’ lobby group NEPROM. “Now it’s a matter of matching the pace of planning procedures and decision-making.”

The challenges vary from site to site, hence the tailor-made approach for each location. However, in difficult cases, the government may use powers under the Environmental Planning Act to keep projects on track, the minister said.

Photo: Depositphotos.com

It remains uncertain exactly what the collapse of the Dutch right-wing government will mean for plans to build 100,000 new homes a year, but commentators expect that most of housing minister Mona Keijzer’s current proposals will still go ahead.

Keijzer will remain in a caretaker role until elections and the formation of a new government. She has already scrapped the cabinet’s plan to freeze social housing rents for housing corporation tenants — a measure developers had warned would undermine investment in new construction and renovations.

Her plans to cut red tape and speed up the planning process are also likely to proceed. However, MPs do not support her proposal to soften the new rent control rules that came into force last July, which have led some investors to sell off property.

Developers’ lobby group NEPROM has called for continuity in the course Keijzer has already set, including the agreements made during the housing summit at the end of last year.

“Our joint commitment to delivering sufficient and suitable housing remains essential,” said NEPROM director Fahid Minhas. “Despite the government’s caretaker status, we expect the cabinet to continue taking responsibility. People who need housing cannot wait.”

Dutch construction sector lobby group Bouwend Nederland said in response to the cabinet collapse that now is the time for politicians to work together to address housing needs, infrastructure problems and the nitrogen pollution issue, which has delayed numerous building permits.

“We have national and local elections coming up, so local and national politicians can now work together,” said chairman Arno Visser. “And that means in practice, not just on paper.”

Keijzer is expected to present legislation to parliament shortly aimed at speeding up the planning process for new residential developments.

Illustration: Mona Keijzer. Photo: Phil Nijhuis

It remains uncertain exactly what the collapse of the Dutch right-wing government will mean for plans to build 100,000 new homes a year, but commentators expect that most of housing minister Mona Keijzer’s current proposals will still go ahead.

Keijzer will remain in a caretaker role until elections and the formation of a new government. She has already scrapped the cabinet’s plan to freeze social housing rents for housing corporation tenants — a measure developers had warned would undermine investment in new construction and renovations.

Her plans to cut red tape and speed up the planning process are also likely to proceed. However, MPs do not support her proposal to soften the new rent control rules that came into force last July, which have led some investors to sell off property.

Developers’ lobby group NEPROM has called for continuity in the course Keijzer has already set, including the agreements made during the housing summit at the end of last year.

“Our joint commitment to delivering sufficient and suitable housing remains essential,” said NEPROM director Fahid Minhas. “Despite the government’s caretaker status, we expect the cabinet to continue taking responsibility. People who need housing cannot wait.”

Dutch construction sector lobby group Bouwend Nederland said in response to the cabinet collapse that now is the time for politicians to work together to address housing needs, infrastructure problems and the nitrogen pollution issue, which has delayed numerous building permits.

“We have national and local elections coming up, so local and national politicians can now work together,” said chairman Arno Visser. “And that means in practice, not just on paper.”

Keijzer is expected to present legislation to parliament shortly aimed at speeding up the planning process for new residential developments.

Illustration: Mona Keijzer. Photo: Phil Nijhuis

The rental residential sector is likely to be the main driver of value growth for real estate investors in 2025, says Jeroen Beimer, head of research at Holland Metropole partner Bouwinvest.

“Inflation and the accompanying interest rate policy have significantly impacted the real estate market in recent years, leading to declining valuations,” says Jeroen. “Inflation has decreased somewhat but the inflation level in the Netherlands remains relatively higher than in our surrounding countries.”

The current global geopolitical situation makes the economic outlook uncertain, and Jeroen expects that this will dampen the anticipated recovery in the Dutch real estate market. In addition, ECB interest rate cuts are not a certainty, he says, and for the Dutch real estate market, this could mean that initial yields will see little movement.

“The primary driver of value growth will therefore be rental growth, particularly in segments with strong demand and limited supply, such as the housing market,” says Jeroen.

“Real estate, with its stable cash flows, has shown itself to be a good hedge against inflation in recent years, and we expect this to remain the case. For a long-term investment horizon, 2025 could be a good ‘vintage year’ for real estate investments. We also anticipate a gradual increase in investor interest.”

Although Beimer expects only limited interest rate cuts, he does see opportunities for yield compression in niche segments of the housing market that are currently underdeveloped. Sectors such as student housing and private residential care, he says, show above-average growth potential and therefore offer an attractive risk-return profile.

“From the demand side, the Dutch housing market, including healthcare real estate, has strong underlying fundamentals and should be attractive to investors,” he says. “At the same time, the Dutch housing market is not unique in this regard. It is a European phenomenon, and the Netherlands is competing for capital with other European markets.”

One problem facing the Dutch market is that of uncertainty about regulations and unfavorable tax measures. The Netherlands needs to build approximately 1 million homes by 2034, and this is going to cost some €400 billion in capital.

“Our message to the national government is clear: ensure consistent policies and an investment climate that is attractive to capital, both nationally and internationally,” Beimer says.

Photo: Bouwinvest