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Location is key to climate adaptive construction

Dutch planners need to take more account of the likely impact of climate change when designating areas for residential development, according to a senior government advisor.

Peter Glas, who heads the government’s Delta Commission on flood prevention, said that some 820,000 new homes are currently scheduled to built in parts of the Netherlands which are likely to be impacted by climate change, particularly flooding.

If the long-term consequences of climate change are not taken into account, this will lead to additional costs and damage in the future, Glas said in a new report. Water and soil systems must be given a more prominent role in site selection, design and construction and, he said, planners must avoid construction in areas which will be needed to implement climate adaptive measures.

Sea level

In particular, this means the Netherlands must not sanction building in flood plains or areas already designated to store excess water and there should be further restrictions on house building outside the dykes, he said.

Some 26% of the Netherlands is below sea level and a further 29% is susceptible to river flooding.

Measures should also be taken to prevent any further lowering of the groundwater table. Introducing the concept of ‘groundwater neutral construction’, he said, would be one way of ensuring this. 

Location

‘The flooding in Limburg has shown that it is not possible to prevent flooding at all times… and it is important to be able to cope with extreme weather situations which go beyond current design standards,’ Glas said. ‘We have to look more closely at where and how we are building.’

The sea level along the Dutch coast will probably be 1.2 metres higher by the end of this century than at the start, but the difference could be as much as two metres, according to calculations by Dutch meteorological office KNMI.

The Dutch coast is protected by a complicated system of dykes, seawalls and sluices built after the devastating floods of 1953 which left over 1,800 people dead.

Climate adaptive construction and water management has a central role in the strategy of Holland Metropole partners, and was at the heart of the alliance’s recent appearances at the Expo Real and Provada trade fairs

Illustration:

Ice on the flood plains of the river Rhine near Wageningen. Photo: Despositphotos.com

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Age matters: the real estate sector faces major challenges

Ensuring the elderly can remain living independently for as long as possible will be crucial in helping deal with the challenges presented by an aging population, according to both real estate and care experts.

While the shortage of homes for youngsters starting out on the housing ladder is a current political priority, there is an equally pressing problem at the other end of the spectrum which will require concerted action in the coming years, the experts say.

Hans Adriani, who chairs a government-backed taskforce on housing and care, told a recent conference organized by Holland Metropole partner Bouwinvest that 110,000 new level floored homes will be needed in the coming years, as well as 50,000 sheltered housing units and 50,000 residential care beds.

Providing this will require close cooperation between local authorities, investors and care institutions, he said. In 2020, just one in three local authority areas had analysed how to deal with the shortage of housing for the elderly, but now ‘it is a theme in every municipality.’

While developing more senior housing has a role to play, there are other challenges ahead, such as the shortage of care workers. According to elderly care umbrella group Actiz, the demand for specialist care for the elderly will only increase, while the number of workers will remain relatively constant. This too means efforts need to be made to ensure the elderly can remain living independently as long as possible, and that their wishes are centre stage.

‘The future of elderly care is at home, and some 90% of the over 75s live independently,’ Actiz chairwoman Anneke Westerlaken told the Financieele Dagblad in an interview last month. ‘We cannot continue to provide care as we do now… and this development is going to place enormous strain on patients, care providers and patients’ social networks.’

Westerlaken says the care sector cannot solve the problem on its own. ‘Society in general must be kinder to the elderly, and they too have a role to play, by maintaining their own networks as they grow older.’

An example of how the real estate industry can help in this community-based approach is the LIFE complex in Amsterdam’s western docklands, which is part of the Bouwinvest healthcare portfolio. LIFE, developed by Holland Metropole partner VORM, is a multi-use complex for the over 50s, combining age-adaptive housing units at all price levels, plus community areas, a restaurant and a special section for people with dementia. The aim, says Erwin Drenth, director Dutch Healthcare Investments at Bouwinvest, is to create an inclusive building where everyone feels comfortable growing old.

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No brainer: homes and cafes added to Rotterdam office district

Rotterdam councillors have voted in favour of a new masterplan to turn the Brainpark business district into a lively mixed-use area, with housing, cafes and shops as well as offices.

‘At the moment there is not much to do in Brainpark 1 after office hours, and this is a waste because it is easy to get to by bike and public transport, and is close to the Erasmus University campus,’ says the city’s housing chief Bas Kurvers. ‘So we are working together with the private sector to make this part of the city a great place to live, work, study and relax.’

The project involves building between 2,500 and 3,000 housing units in the district, of which 30% will be rent controlled. In addition, some 45,000 square metres of space will be available for both commercial and community functions, while the public space will be redeveloped with more focus on greenery and water.

The offices already located in the district will either be rebuilt or replaced by more energy efficient options and traffic pollution from the nearby A16 motorway will also be tackled with multifunctional noise barriers

Now the concept has been finalised and backed by the council, city officials and developers will start fleshing out the plans. If planning procedures can be completed quickly, work will start on the first buildings in 2023.

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Amsterdam to redevelop city centre naval depot

One of the last undeveloped parts of central Amsterdam will be turned into a mixed use residential area and park, with plenty of room for innovative industry, under new plans drawn up by the city council.

The Marineterrein area, close to Amsterdam’s main railway station, has been used by the navy since 1655. The armed forces are now moving out, clearing the way for the redevelopment of a large city centre site which is almost entirely surrounded by water.

The plans include 800 homes – a mixture of social and non-rent controlled housing and owner occupier properties – plus small firms and educational institutes. Most of the buildings will be no higher than 30 metres, but there will be an option for two landmark constructions of 40 metres high.

Some 70% of the 12.8 hectare site will not be built on and original buildings, such as the gateway and the commander’s mansion, will be renovated and repurposed. A small part of the land, including a heliport, will remain under navy control.

Amsterdam has now opened up the project for consultation until the end of January. A final decision on the plans will be taken next summer.  

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Amsterdam acts to stop property speculators snapping up homes

Amsterdam has become the first Dutch city to set out how it will stop speculators buying up existing property to rent out, when new legislation allowing them to do so comes into force next year.

City officials plan to ban anyone from buying housing costing less than €512,000 without a commitment to live in it for at least four years. The sales ban would not apply to property which is already being rented out, as long as that was for at least six months prior to the sale.

Some 30% of homes in the Dutch capital are currently in the hands of private investors – both developers who build and rent out property and those who buy existing homes as an investment.

But landlords say the new measure, expected to come into effect on January 1, will not help ease the shortage of affordable housing in the Dutch capital.

The private landlords association Vastgoed Belang says the proposal will lead a greater shortage of rental homes, particularly in the mid-market sector. ‘Councils are prioritizing people who want to buy above newcomers on the housing market and people who can’t or don’t want to buy,’ the organisation said in a reaction.

Housing ladder

The new legislation is one of several measures the government is bringing in to try to help first-time buyers get a foot on the housing ladder. The cabinet has already increased the property transfer tax for investors from January this from 2% to 8% and this would appear to be having an impact.

According to preliminary research by the Dutch land registry, or Kadaster, private landlords bought 10,384 homes in the six months to the end of June, the lowest figure since 2013, and the equivalent of 7.4% of all properties to come on the market.

One third of all houses sold in the four big Dutch cities of Amsterdam, Rotterdam, The Hague and Utrecht last year ended up in the hands of private landlords.

In total, 8.6% of the Dutch housing stock is in the hands of private investors, defined by the Kadaster as organisations or private individuals who own at least three properties, and this is the lowest percentage in Europe, according to Vastgoed Belang.

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Provada 2021: Holland Metropole partners highlight climate change

Climate adaptation and circular construction are central issues at the three-day Provada property trade fair in Amsterdam which starts on October 26, and the Holland Metropole partners are showcasing their own approaches.

In Rotterdam, built around a major river delta, the role of climate change and the transition towards green energy are central themes across all planning decisions, given that the pressure on every square metres in the city is immense.  

The city has recently embarked on a programme to make better use of 18 square kilometres of city roofs, which are being turned into gardens, water buffers and more. Even the roof of the new Doelen entertainment complex will become a ‘green oasis’, says the city’s planning chief Bas Kurvers. ‘The roof will collect rainwater during heavy rainfall and contribute to cooling if it is hot. Everyone benefits,’ he says.

In Eindhoven too, measures to absorb water and boost the amount of greenery are incorporated in every street maintenance project. Project developers are also required to include water management in all new projects through changes to local planning laws.  ‘Climate adaptation is an essential part of our residential housing strategy,’ says Eindhoven’s climate chief Rik Thijs. ‘It is not simply about the technical solutions for the challenges presented by climate change but a way of strengthening Eindhoven as a pleasant place to live and locate.’

It is not just the Netherlands bigger cities that are putting climate change at the heart of their strategy. Holland Metropole developers and investors are also taking a lead in sustainable project development.

Bouwinvest, which aims to meet the Paris targets by 2045, has made social returns as important a part of its investment approach as the financial ones. ‘Investing in reducing energy usage is not only a question of taking responsibility for the energy transition. We see it as a pre-condition to ensure long-term returns for our clients,’ says Bernardo Korenberg head of Sustainability and Innovation.

Vesteda has developed a tool to provide insight into the six most important risks climate change will bring to the Netherlands, ranging from a breach of the flood defence system to heat stress.

‘We integrate the sustainability performance of potential new acquisitions and large renovations into our investment decision process,’ says chief investment officer Pieter Knauff. ‘This is not only good for our tenants and society, but also encourages our people to come up with creative, tailor-made solutions in every project, to optimize sustainability performance, living comfort and financial returns.’

Syntrus Achmea, in turn, has drawn up road maps covering different scenarios for making its portfolios Paris proof, in order to help investors make more informed choices. ‘Our ambition is to become carbon neutral,’ says Jos Sentel, manager of Strategy & Research. ‘On average the carbon dioxide emissions which can be attributed to our residential portfolio are 34% lower than in the reference year of 1990, and our target is a 50% reduction, no later than 2030 and fully neutral in 2050.’

At VORM, too, the impact of the company’s role as a project developer when it comes to social themes is an increasingly important part of its future. ‘We have a responsibility to organise this properly,’ says concept developer Wouter Disseldorp. The company has, for example, been using wadis and water buffer zones as well as more low-carbon building materials to both head off and mitigate climate change.

This integrated approach is being taken across the development chain. AM, for example, sees water management as an integral part of area development. ‘If you include it at an early stage, water can be used to add quality, and not simply be seen as a hazard,’ says chief executive Ronald Huikeshoven.

‘As planners, we are facing responsibilities that go beyond delivering single solutions for single issues,’ says Irma van Oort, partner at architecture bureau KCAP. ‘We work with an integral approach to sustainability and draw up comprehensive concepts which will have a strong effect at every level, from climate-adaptive urban and landscape design to sustainable mobility solutions and construction details that lower the carbon footprint of our buildings.’

By incorporating climate adaptation into their projects, the Holland Metropole partners say they are benefiting both clients, tenants and investors, as well as society at large.  ‘In developing in a climate adaptive and nature inclusive way, we can make new projects resistant to climate change and contribute to biodiversity as well,’ says Edward Zevenbergen, director of projects BPD North-West. ‘We go for solutions which improve both the quality of the building and the location.’

Check out the Holland Metropole partner stands

Find out which Holland Metropole partner experts are speaking and where

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Rotterdam is home to the world’s biggest floating office

Rotterdam is home to the Global Centre on Adaptation, an international broker for climate change and housed in the world’s biggest floating office, which has been largely constructed from timber.

The GCA’s new home is a massive timber ark, which is completely off grid and self-sufficient in energy. The south facing roof is covered with 900 square metres of solar panels and the ark uses a water-based heat exchange system for heating. The north-facing roof is green to store water and help keep the construction cool.  

Everything used in the ark is reusable and recyclable, which means the construction can be taken apart and moved to a new location. The GCA office, which is ranked BREEAM Outstanding, even has its own herb garden.

‘I am delighted that GCA will be housed in a building that showcases pioneering climate-resilient office design and I hope it will inspire others to future-proof their infrastructure,’ said GCA chief executive Patrick Verkooijen. ‘Taking suitable steps before disaster strikes not only makes economic sense but can also help us to mitigate against climate change.”

Rotterdam’s Rijnhaven is currently being redeveloped into a new city centre with a floating park covering 18 hectares and high-rise with a total of 2,500 new homes.

The project to develop the floating office was backed by the city of Rotterdam.

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Holland Metropole alliance heading for Expo Real

The Holland Metropole alliance is heading for the Expo Real real estate trade fair in Munich with a team of 24 partners, plus five start-ups in the real estate sector.

This year, the use of timber in modern construction, as well as the importance of climate change and adaptation, take centre stage on the Holland Metropole stand over the three days of the fair.  

The recent floods in the Netherlands, Germany and Belgium brought home just how important it is to tackle climate change, adapt to it and to deal with excess water caused by increasingly heavy rainfall.

Across the Dutch real estate sector, climate change targets are becoming increasingly important and the themes of circular construction, carbon emission reduction and water management are at the forefront of the Holland Metropole approach, whether local authority, developer or investor.

‘We integrate climate adaptation into the area, not at the level of individual buildings. Water, for example, is not a threat but an opportunity to devise and realise distinctive environments with the ability to capture and buffer water,’ says Ronald Huikeshoven, chief executive of developer AM.

Timber too has an important role to play in construction of the future. Experts have calculated, for example, that if the one million new homes which the Netherlands will need by 2030 are made primarily from wood rather than concrete, it would save 50 megatons of carbon dioxide emissions.

‘Industrialisation allows the construction sector to offer a speedy way of making sure the housing supply meets demand. Wood is light and easy to work with, making it extremely suitable for such processes,’ says Wouter Disseldorp, concept developer at VORM.

Much too depends on people seeing the advantages of timber. ‘We try to persuade our clients to go for wood, and while lots of people talk about it, they have to actually take the plunge, rather than say it is all too difficult. Of course, a building is never 100% wood, but it would be an enormous step forward if we got most of the concrete out of a building,’ says Edward Schuurmans, a partner at architects KCAP.

This year, Expo Real runs from October 11 to 13, offering a networking platform to some 1,200 exhibitors and thousands of visitors from all over the world.

The 23rd edition of the trade fair is taking place against the backdrop of the coronavirus pandemic and the climate crisis, both of which have a leading role across the conference programme. In total, 121 discussion panels, speeches, forums and other events will take place across the seven halls of the Messe München venue during the three-day fair.

To find out more about the way the Holland Metropole partners are tackling climate change, as well as the great range of investment opportunities on offer throughout the region, please visit them at stand A2.130.

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Dutch government to invest €1bn in new housing over 10 years

The Dutch government is to spend €1bn over the next 10 years to stimulate the supply of new housing, to reduce the shortage of affordable rental housing and create more options for first time buyers.

The plan was included in the coalition government’s 2022 spending plans, which were published on September 21, and highlights the urgency of the current situation, ministers say.

Details of how the money will be spent have not yet been published and it is likely that the next cabinet will take the lead. The current cabinet is operating in a caretaker capacity while a new coalition is put together following the March general election.

Action

Caretaker home affairs minister Kasja Ollongren said that despite advances made in the past year – such as agreements to develop major residential areas in 14 separate locations nationwide – much still needs to be done to boost the housing supply.

Research is currently underway, for example, into extending the points-based system for calculating maximum rents to cover property outside the current rent-controlled sector, Ollongren told MPs in a briefing.

However, she warned, ‘tough regulation will lead to greater affordability in the short term, but will reduce investors willingness to invest, and therefore impact on the availability of homes in the mid to long term.’

Debate

During two days of debate on the 2022 spending plans, MPs also voted in favour of slashing a further €500m from the extra tax which social housing landlords pay. There is, however, majority support to see the tax scrapped altogether and that too will be an issue for the next cabinet.  

Report

Despite the cash injection for new housing, it may not be enough to get housing development up to speed. In June, a report commissioned by Ollongren said that the next Dutch government will have to invest almost €20bn to facilitate several major housing and infrastructure in the coming years.

Without a significant contribution from the state, new homes may not be built at the rate required and they will be more expensive than planned, the report, by the Rebel research group, said. Several of the projects are located in the Holland Metropole region.

In total, the 14 projects in the study involve building 436,000 new homes around the bigger Dutch cities, of which 210,000 can be completed by 2030 and 70% will be classed as ‘affordable’.

One million homes

In February, an alliance of developers, construction companies, lobby groups, housing corporations and tenants associations said that one million new homes need to be built in the the Netherlands in the next 10 years to meet demand.

The organisations said at the time they hoped their plans will form the backbone of the next government’s strategy on housing.

Lagging supply

So far new building is lagging behind government expectations. Construction industry economic institute EIB says that it expects 63,000 new homes will be completed this year, which is well below the government’s target of 75,000 new build and conversions.

Nevertheless, the number of permits granted each year is going up, and has risen 30% since 2019, when new home construction reached a low point, the EIB said.

Earlier in September, thousands of people took part in a demonstration in Amsterdam, calling for more investment in housing.

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‘The elderly form a diverse group who don’t want to move’

One way often mooted to help solve the housing crisis in the Netherlands is to encourage older people whose children have left home to downsize and free up large property for a new, young family.

However, it is proving difficult to set this in motion because developers, housing corporations and local authorities are not actually talking to elderly residents about their needs, according to Groningen University researcher Petra de Jong.

De Jong, an economic geographer specializing in housing demographics, has researched the issue of housing for the elderly for her PhD thesis. Persuading the elderly to move home requires alternatives that actually meet their needs, she said: ‘They need to be attractive and affordable, and people usually want to stay in the same neighbourhood.’

Urgency

While older people are often described as ‘occupying’ large houses, ‘as long as they don’t feel the urgency to move because, for example, of their physical limitations, then they don’t see the need,’ De Jong told NOS Radio 1 news.

‘Yes, the house might be a bit large and the garden a bit difficult to manage, but people are often attached to both their home and their locality,’ she said. ‘It has been the stage for many precious memories.’

In addition, elderly home owners have often paid off their mortgages, so the costs are low. ‘And aside from this, moving demands money and creates upheaval, so it gets put off as long as possible,’ she said.

This means the standard approach to housing for seniors is not enough to have an impact,’ De Jong said.  ‘They should be involved from the start of the development process. Talk to them and find out what their demands and preferences are,’ she said. ‘But don’t pretend to know what the elderly want, because they are an extremely diverse group.’

Housing targeting seniors in the Netherlands is often marketed at the over-55s.

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Cut the housing shortage by better use of current stock: report

The Netherlands could offset some of the shortage of housing in the short term by making better use of its current housing stock, according to a report by research group Platform31.

Some 40% of dwellings are currently lived in by one person, and the average amount of space is around 65 square metres each – almost 20 square metres more than in Germany or Belgium, the report points out.

The report highlights three areas where action can be taken: putting more people in the same space, more housing in the same space, and encouraging the elderly to move to smaller homes.

Living alone

Although some people choose to live alone in big apartments, there are ways to encourage a better use of space, Platform31’s Frank Wassenberg told broadcaster NOS. ‘Living with more people should be rewarded,’ he said. ‘The more people who can share the current space, the less you have to build.’

One way in which people could be encouraged to share is stop the financial penalties facing people who do. For example, banks and other mortgage providers can be difficult about allowing home owners to rent out a floor.

Tough rules on tenants rights may also deter people from renting a room or floor to another person, Platform31 said.

Social security laws are another factor, the researchers say. For example, two pensioners or two people claiming welfare benefits are given hundreds of euros less in state support if they share a home.

Friends contracts

Allowing young adults to share properties – using so-called Friends contracts after the popular series – would also reduce the pressure on starter homes, the researchers say.

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The Netherlands has eight million homes

Despite the shortage of housing in the Netherlands, the national housing stock has increased by one million to eight million over the past 16 years, according to August figures from national statistics office CBS.

In total, the supply of housing increased by 39,000 units in the first six months of this year, including both new build and conversions.

The province of Zuid-Holland, home to Holland Metropole partners Rotterdam and The Hague, has most housing – a total of 1.7 million homes. Noord-Holland, which includes Amsterdam, has 1.4 million of the total.

Single people

Given the national population is now around 17.4 million, the eight million figure means there are 2.2 residents for each home, compared with 4.8 people 100 years ago. Nevertheless, there is still a major shortage of properties, because of the surge in people living alone, the CBS said.

Amsterdam for example, now has 464,000 homes for its population of some 860,000, or fewer than two people per property.

One million new homes

In February, a consortium of 34 developers, construction companies, lobby groups, housing corporations and tenants associations formed a massive alliance to tackle the housing shortage in the Netherlands.

In total, they say that one million new homes need to be built in the Netherlands in the next 10 years to meet demand.

The organisations hope their plans will form the backbone of the next government’s strategy on housing.

Current government strategy involves realising 75,000 new homes a year through new build and converting other buildings.

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Empty retail space could become 6,500 new homes

Some 6,500 new homes could be created by converting long-term redundant retail premises into housing, according to research by NVM Business, the commercial real estate arm of real estate agents’ association NVM.

The future of some types of Dutch retail real estate remains uncertain, given the impact of coronavirus on people’s shopping habits and the surge in online sales. According to national statistics office CBS, the online retail sector saw sales shoot up 86% in the first quarter of 2021, compared with 2020.

While supermarkets and food shops in busy neighbourhood shopping centres, for example, are doing well, the picture is less bright for inner city high streets which focus on non-food, NVM Business says.

As with offices, the high vacancy rate in some retail sectors offers opportunities for residential housing. Some 800,000 square metres of retail space have been vacant for more than a year and transforming redundant shops into homes is, says NVM Business chairman Sander Heidinga, ‘a very interesting challenge’.

NVM Business estimates that converting retail real estate could reasonably generate 6,500 homes in the coming years, but points out local zoning plans will have to be changed to make this possible.

‘However, many local authorities now realise that they need to change the retail landscape, because of the changes and impact of coronavirus,’ NVM Business says. ‘They are more aware of the need to tackle the problems.’

The finances do need to be carefully worked out because redevelopment is expensive and housing generates lower rent than housing. Daylight can also be a problem in dense retail areas, the organisation points out.

Last year, retail estate advisory group Colliers said that 10,000 apartments could be developed by converting empty shops in the 70 biggest towns and cities. And although there are problems with shape and size, 40% of empty retail properties do offer opportunities for conversion, Colliers said.

The province of Noord-Holland is also looking into the options. It estimates, for example, that up to 400 homes could be created in central Hoofddorp by converting redundant shops.

The office market is also facing a coronavirus-driven shake-out. Last year, some 420,000 square metres of redundant office space was either given a new lease of life or demolished, and 53% of it was converted into housing.

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Fewer office conversions in 2020, but half involved creating housing

Some 420,000 square metres of redundant office space was either given a new lease of life or demolished in the Netherlands last year, according to a market analysis by real estate agents’ association NVM.

But despite the coronavirus pandemic and the mounting popularity of working from home, the total amount of vacant office space in the Netherlands remained around 4.45 million square metres, NVM Business said.

In 2019, 505,000 square metres of offices were either transformed for a new function or demolished.

Coronavirus

‘2020 certainly was special,’ said NVM Business chairman Sander Heidinga. ‘Coronavirus and measures to limit social contacts may have led to reduced demand for office space and lower investment volume, but both supply and returns remained stable… It is unclear if the wish to work from home is leading to reduced demand for office space.’

Over half (53%) of the office space which was taken off the market last year was converted in housing, 31% was demolished and 10% turned into a hotel.

In Amsterdam, for example, work on transforming the three Trinity Buildings office blocks in the Zuidoost district into 133 homes, most of which are aimed at the mid-market sector, is nearing completion. 

And in The Hague, the former transport ministry office complex, a listed building, is also being transformed in housing, for both rent and sale.

The government has set a target of creating 75,000 new homes a year up to 2025, to meet demand. And including conversions – such as transforming redundant offices into apartments – the total number of new homes created in 2020 did rise to 74,565, according to national statistics agency CBS.

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Legendary living for the over 55s in Utrecht

Work will start next year in Utrecht on building a special residential complex containing 150 apartments aimed at healthy and mobile people over the age of 55, and encouraging them to stay that way. 

The project, developed by Holland Metropole partner Dura Vermeer, is in the city’s Leidsche Rijn district and will cover 47,000 square metres when completed.

The aim of the Legends housing complex, says architects studio Architekten Cie, is to contribute to ‘happy aging’ by creating new forms of living in which people can lead a fun, active, healthy and meaningful life for longer.

Some 50 of the apartments will be rent controlled, and a further 50 will be mid-market, with a rent of between €750 and €1,200.

‘Once children have left home, many people start a new phase in their lives,’ Utrecht’s planning chief Klaas Verschuure said. ‘The people who come to live in Legends may well leave a home which a young couple can move into… this is how we get the housing market moving.’

The complex, which is virtually energy neutral, uses sloping paths, stairs, galleries and bridges to create differences in height and encourage movement, and the apartments surround a private garden for all residents.

The apartments can also be adapted in line with people’s care needs as they get older, Dura Vermeer said.  

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Major building projects need state support

The next Dutch government will have to invest almost €20bn to facilitate several major housing and infrastructure in the coming years, according to a report drawn up on behalf of housing minister Kajsa Ollongren.

Without a significant contribution from the state, new homes may not be built at the rate required and they will be more expensive than planned, the report, by the Rebel research group, said. Several of the projects are located in the Holland Metropole region.

In total, the 14 projects in the study involve building 436,000 new homes around the bigger Dutch cities, of which 210,000 can be completed by 2030 and 70% will be classed as ‘affordable’.

Most of the funding – €109bn of the €142bn – will come from private sources and local authorities will contribute €13.7bn. The rest of the money  – the equivalent of roughly €15,000 per property –  will need to come from central government resources, the report said.

The report includes €33bn for the cost of public infrastructure projects surrounding the developments, including expanding the Amsterdam metro system to Schiphol airport and a direct train link between Amsterdam and Almere.

It will be up to the next coalition to decide what what should happen next, Ollongren said in a reaction.

In February, an alliance of developers, construction companies, lobby groups, housing corporations and tenants associations said that one million new homes need to be built in the the Netherlands in the next 10 years to meet demand.

The organisations hope their plans will form the backbone of the next government’s strategy on housing.

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Homes are selling more quickly and for above the asking price

Half the homes which were sold on the open market in the Netherlands went for more than their asking price last year, according to new figures from national statistics agency CBS.

The figure is another illustration of the mismatch between supply and demand for owner-occupier homes. In 2015, just 7% of homes were sold for more than the seller originally asked for.

The figures also show that underbidding is no longer the norm. In 2015, 87% of homes were sold for below the list price, but this fell to 38% last year, the CBS said.

Quick sales

In addition, the researchers found that houses and flats are changing hands much more quickly than they used to. Last year, a property was on sale for an average of just two months, compared with 10 months in 2015.

The research was carried out on behalf of the home affairs ministry, which deals with housing-related issues and is under pressure to increase the supply through new building projects.

One million homes

Meanwhile, the construction sector institute EIB has warned meeting the one million new homes target drawn up by developers, local authorities and housing corporations will mean building in the countryside.

Current planning capacity can yield almost 600,000 homes in the seven most populous provinces, but this means some 300,000 homes still need a location, the EIB said in a new report.

‘These locations can be found in the green spaces around the cities, where there are also good opportunities to integrate housing into the environment,’ the EIB said. Focusing on building in more rural areas combined with inner-city housing, the institute said, will offer better opportunities to meet demand.

Strategy

EIB director Taco van Hoek told the Financieele Dagblad the bottleneck lies in the strategy to ‘first build in cities rather than in the countryside’.

Van Hoek told the paper that he hopes the report will be taken on board by the next cabinet which will be charged with putting the one million new homes strategy into practice.

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Rotterdam’s former post office is being restored to its former glory

After being empty for 13 years, work will start this summer on renovating one of Rotterdam’s most distinctive buildings, the former central post office in the heart of the port city.

The project is in the hands of developer Omnam, which is transforming the listed building into a mixed use project with some 300 new apartments in an adjacent high rise.

The post office, city hall and stock exchange were the only buildings in central Rotterdam to survive the bombardment at the start of World War II.

‘This is no ordinary renovation project,’ Omnam’s Inan Sade told the AD newspaper. ‘I am Jewish myself and I understand the strong attachment to a building the survived World War II. I see it as my own personal mission to give it back to the city.’

The design is in the hands of American architecture bureau ODA and Dutch firm Braaksma en Roos which was involved turning Amsterdam’s former gas works into a cultural and small business centre.  

The ground floor of the former post office, which first opened for business 98 years ago, will house shops and cafes under the vaulted glass roof once the renovation has completed and will be open to the public on two sides.  The rest of the upper floors will become a five star Kimpton hotel with 238 rooms.

Behind the building, Omnam is building a 155 metre high tower which will contain hotel rooms and 305 apartments, around one third of which will be sold to private owners. ‘We first wanted to build a 200 metre tower but we went down a bit to ensure the best balance between having enough apartments and fitting in well with the surroundings,’ Sade told the paper.

Sade has not yet come up with a use for the nuclear shelter under the former post office. It is, he says, particularly difficult to reuse because it only has one entrance and there is no ventilation. It does, he told the AD, still contain the telephone which could be used to phone the monarch of the day. ‘Yes, I tried it,’ he said ‘but the king did not answer.’

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Amsterdam poised to reach 2021 housing target

Amsterdam is likely to meet its target of building 1,670 new homes for the mid market rental sector this year, the city’s housing chief Laurens Ivens has told local councillors.

In the first three months of this year, work has started on building 1,694 homes in the Dutch capital of which 728 will have a rent of between €700 and €1000 a month. Most of the projects are in the southeast of the city, where land is in plentiful supply.

Plans are also in the pipeline to start work on a further 10,838 homes this year, which includes 3,064 mid-market rentals, Ivens said.

Nevertheless, Ivens said, the challenge for the second, third and final quarter of the year is to actually realise the council’s plan to build 7,500 new homes a year. ‘Builders and developers are still coping with coronavirus but the processes are, in the main, running smoothly and lots of companies want to invest in Amsterdam,’ he said.

Ivens wants to speed up the development of mid-market rentals, which are aimed at people who earn too much for social housing but who do not earn enough to buy or rent privately.

City officials have agreed that 40% of each new housing project in the city be social housing, with a rent of below €750 a month, 40% should be mid-market and 20% should either have a rent of over €1,000 or be sold to owner occupiers.

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The Hague tags 2021 the ‘Year of the Roof’

The Hague city authorities have declared 2021 to be the ‘Year of the Roof’, with an ambitious programme to encourage landlords and home owners to make better use of the top of their buildings.

The move, backed by the city council last November, is part of The Hague’s aim to be climate neutral by 2030.

By encouraging people to install solar panels on their roofs, for example, the city will produce more renewable energy and so become a step closer to meeting green energy targets.

In addition, the city is offering subsidies for people who install green roofs, using sedum or other types of plants – and a total of €600,000 in grants is available this year. Green roofs help deal with excess rainwater as well as providing habitats for insects, officials point out.

https://duurzamestad.denhaag.nl/wat-kun-je-doen-op-je-dak/

A similar project in nearby Leiden in 2020 resulted in the placement of 2,875 solar panels and 8,400 square metres of green roofs. The budget for grants was also three times over-subscribed.

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New home sales pick up with price rises of 8.7%

The price of new homes in the Netherlands rose 8.7% in the final quarter of 2020, in line with developments earlier in the year and with existing property prices, national statistics agency CBS said in April.

In total, developers sold 10,744 newly-built homes in the final three months of the year, nearly 54% up on the same period in 2019. This was the first quarter in which more than 10,000 new home were sold since the final three months of 2017, the CBS said.

Developers sold 32,200 new homes throughout the year.

House prices in the Netherlands are rising more quickly than in the European Union as a whole, the CBS said. In the final three months of 2020, house prices rose by an average of 5.7% in the EU as a whole. Luxembourg topped the ranking, with an average increase of 16.7%.

One million homes

Earlier this year developers, construction companies, lobby groups, housing corporations and tenants’ associations in the Netherlands joined forces in an effort to tackle the chronic housing shortage.

The group says one million new homes need to be built in the the Netherlands in the next 10 years to meet demand – a call first made by the Holland Metropole alliance in 2017.

The organisations hope their plans will form the backbone of the next government’s strategy on housing.

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Will the Netherlands bring back the ministry for housing?

The shortage of housing emerged as one of the main themes in the March general election, with parties across the political spectrum calling for a greater role for central government.

In addition, several parties likely to be involved in the next coalition government have called for the establishment of a specialized ministry for housing and planning. Housing currently falls under the home affairs ministry while planning has largely been transferred to local and regional councils.

Developers, investors and local authorities estimate the Netherlands needs one million new homes by 2030 and most parties accepted this figure in their manifestos. However, experts say, this can only be achieved if a minister for housing or spatial planning takes the lead to overcome the bottlenecks in local authority planning procedures.

State control

Putting together a new coalition – which will require at least four parties – will take several months, and housing is likely to be a key issue in the next cabinet’s plans.

Here’s a summary of the positions of the main parties.

The VVD emerged as the biggest party in the March vote. The VVD does not support the re-establishment of a minister for housing, but does support giving the state more control about planning issues.

D66, the Liberal democratic party which is now the second biggest in parliament, explicitly calls for a bigger role for national government in ‘achieving our major ambitions in terms of housing, nature and climate’.

ChristenUnie, the junior party in the outgoing coalition, has calld for a more ‘integrated approach’ to housing issues.

The Labour party (PvdA) wants action to tackle property speculators, and says there should be a minister for housing and spatial planning.

The Christian Democrats (CDA) went as far as to say that there should be ‘less market, more cooperation’ in Dutch government housing policy.

In addition, there is more acceptance among the bigger parties of the need to build in green spaces. D66, for example, explicitly listed a string of potential locations for new housing, including several in the Holland Metropole area.

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Government allocates €266m to build new homes faster

Local authorities are to receive a further €266m in funding to develop 45,000 new homes, as part of the government’s efforts to eradicate the shortage of housing.

The money will be used for 30 specific projects, and is the second tranche of spending from a €1bn fund to boost the housing supply set up in 2019. In total, nearly 96,000 new homes are being partly financed via the fund.

In total, funding was requested for 53 different projects. The successful schemes are based across the country, including Holland Metropole members Eindhoven (District E) and Amsterdam (IJburg), and several in The Hague, such as the ICT Security Campus project.

Seven of the successful schemes are developments around railway stations which, says housing minister Kajsa Ollongren, offer considerable potential. In other projects, former industrial areas are being turned into residential estates.

“It is fantastic to see how everyone is committed to delivering as many homes as possible,’ Ollongren said. ‘More affordable homes are desperately needed to give starters and people with lower incomes more opportunities in the housing market.’ The extra funding, she said,  ‘is a great tool to accelerate construction at locations where the housing shortage is greatest.’

The first tranche of funding, for 27 projects, was awarded last September, also involving a number of Holland Metropole partners in the Amsterdam region, The Hague, Eindhoven, Rotterdam and Utrecht.

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One million new homes needed

Some 34 developers, construction companies, lobby groups, housing corporations and tenants’ associations in the Netherlands have joined forces in an effort to tackle the chronic housing shortage.

The group says one million new homes need to be built in the the Netherlands in the next 10 years to meet demand – a call first made by the Holland Metropole alliance in 2017.

The Netherlands will elect a new parliament on March 17 and the organisations hope their plans will form the backbone of the next government’s strategy on housing.

Current government strategy involves realising 75,000 new homes a year though new build and converting other buildings, but the target was missed in 2020 and the same will happen this year.

Greenfield sites

Much of the new alliance’s strategy involves building new housing developments on greenfield land, rather than focusing on small, inner city locations.

‘We are going to build a lot more homes in locations which are easy to develop,’ said Desiree Uitzetter, chairwoman of developers’ organisation Neprom and area development chief at Holland Metropole member BPD. ‘We are going to build mixed neighbourhoods to suit every pocket and every type of household.’

The size of the challenge ahead means that everyone involved – the private sector, local government, housing corporations and consumer organisations – will have to be involved,’ she said. ‘They are all participating, and that makes me optimistic,’ Uitzetter said.

Minister

Housing minister Kajsa Ollongren has not yet reacted directly to the alliance’s call but told newspaper Trouw in an interview that making up the shortfall in homes is a long-term project.

In total, her ministry has pumped €4bn into boosting the size of the Netherlands’ housing stock, she said.

‘The best way to eradicate the shortage is to build more,’ she told the paper. ‘That is crucial. The shortage is across the board, from social housing to expensive owner-occupied properties. We have flicked all the switches – tax, subsidies, rules and regulations – and done what we can.’

Actieagenda Wonen (pdf)

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VORM geeft invulling aan oud bedrijfsterrein

De gemeente Rotterdam heeft ontwikkelaar VORM aangewezen als winnaar voor de ontwikkeling van 167 huur- en koopwoningen op een braakliggend terrein in het zuiden van de stad.

Project Koer biedt woningen voor starters, gezinnen en senioren en heeft voorzieningen en veel groen in de Afrikaanderwijk van de stad. Deze wijk ligt dichtbij de rivier en is ongeveer 15 minuten lopen van de Erasmusbrug en Hotel New York.

“Zo kunnen mensen die net zijn afgestudeerd en sociale stijgers blijven wonen in de Afrikaanderwijk waar ze zijn opgegroeid’’, zegt wethouder Bas Kurvers (Bouwen en Wonen).

Er zijn werkplekken voor bewoners die rustig buiten hun eigen huis willen werken. Verder is er een collectieve binnentuin waar kinderen veilig kunnen spelen. In de parkeergarage op de Laan op Zuid komt een mobiliteitshub met elektrisch deelvervoer. In een bijgebouw van het complex, genaamd ‘Villa Residu’ komt een collectieve klusplek voor bewoners.

Het nieuwbouwproject KOER maakt deel uit van de ontwikkeling Parkstad, een stedelijke wijk met meer dan 1000 woningen en voorzieningen zoals een zwembad en een sporthal in het Huis op Zuid.

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VORM gives shape to Rotterdam brownfield sites

Rotterdam city council has awarded the contract to develop 167 non-rent controlled properties on a brownfield site in the south of the city to Holland Metropole partner VORM.

The Project Koer development is part of wider efforts to provide more homes for families, the elderly and starters on the housing ladder in the Afrikaander district of the city which is close to the river and just a 15 minute walk from landmarks such as the Erasmus Bridge and Hotel New York.

The project will enable people who grew up in the neighbourhood to remain living there even if their housing needs change, city council housing executive Bas Kurvers said.

The development includes one block with a transparent lobby where a variety of community activities can take place as well as communal gardens and electric shared cars. Residents will also be able to work together on odd jobs in ‘Villa Residu’, which will have a supply of shared tools. ‘Koer is about inclusive living with a Rotterdam twist,’ VORM said.

The Koer project is part of the wider Parkstad development, which will include more than 1,000 homes when completed, as well as a swimming pool and sports hall.

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More housing completed in Amsterdam’s Zuidas business district

Holland Metropole partners BPD and AM have completed a new project in Amsterdam’s Zuidas business district, which provides 144 homes, as well as shops, and a car and bike park.

The Gustav was designed by Rotterdam architechts KCAP, also a Holland Metropole partner, and is spread across two buildings in the heart of the financial district.

The northern building contains 96 studio apartments and targets starters on the housing ladder, with communal areas on each floor. The southern building has 19 studios and 29 large apartments on the upper floors, which have private gardens and balconies.

The Gustav is the latest housing project to be completed in the Zuidas district, which will eventually have thousands of homes for a wide range of incomes in between the office blocks.  

‘Realising 10,000 new homes in Zuidas is a lot and it is seriously going to change the way the area looks and thrives,’ says Zuidas director David van Traa

‘But it is not just about building homes – international investors, developers, pension funds, employers – they all need an environment that is hyper-mixed, to create an area that works from both a business and a social perspective.’

Zuidas is being constructed as a complete urban district and will include schools, a library and facilities such as a health centre and cultural amenities as the residential population grows.

Photo: © Ossip van Duivenbode

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Gemeenten uit Stedelijk Gebied Eindhoven en corporaties slaan handen ineen om woningnood te verminderen

Dertien woningcorporaties in Zuidoost Brabant en de negen gemeenten uit het Stedelijk Gebied Eindhoven (SGE) bundelden hun krachten en maakten afgelopen jaar samen een plan voor een standaard sociale huurwoning.

Belangrijkste doel: lagere bouwkosten en een versneld bouwproces. Het gaat om zowel eengezinswoningen als appartementen voor 1 of 2 personen. Hiermee willen de partijen meer betaalbare, duurzame en sociale woningen beschikbaar stellen voor huurders om zo de krapte op de woningmarkt te verminderen. De komende vijf jaar moeten er jaarlijks ongeveer 200 tot 250 gestandaardiseerde woningen per jaar bij komen. Ontwikkelaars Heijmans en BAM Wonen hebben de opdracht gekregen om deze sociale huurwoningen te bouwen.

Unieke samenwerking 

Volgens Bas Sievers, directeur-bestuurder van woningcorporatie Woonpartners gaat het om een voor Nederland unieke pilot. ‘Met deze bijzondere samenwerking hebben we de toekomst van de woningbouw in handen. Samen kunnen we sociale huurwoningen betaalbaar houden en krijgen we de kans om ons woningbestand uit te breiden.’ De woningen komen te staan in de negen gemeenten uit het Stedelijk Gebied Eindhoven. In onder andere in Helmond, Geldrop-Mierlo, Veldhoven en Eindhoven zijn de gestandaardiseerde sociale huurwoningen straks te vinden.

Krapte op de woningmarkt

De economische ontwikkeling in de regio Eindhoven zorgt de laatste jaren voor extra werkgelegenheid en een positief migratiesaldo. Terwijl de effecten van de Coronacrisis nog moeilijk te voorspellen zijn, is er nu geen reden om aan te nemen dat deze trend in de komende periode gaat veranderen. Veel mensen willen in het Stedelijk Gebied Eindhoven wonen. Dit zorgt voor krapte op de woningmarkt. Om betaalbaar wonen toegankelijk te houden, staan woningcorporaties voor de opgave om de komende vijf jaar duizenden duurzame, sociale huurwoningen te realiseren. Maar de bouwkosten, beschikbare locaties en procedures vormen op dit moment de grootste belemmerende factor. In de pilot Standaard Sociale Huurwoningen gaat dat anders en is het doel juist lagere bouwkosten en een versneld bouwproces.

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Councils, developers urged to act on senior housing

The shortage of suitable housing for seniors is a major issue across the Netherlands, and many people are finding it difficult to move to smaller or more age-appropriate accommodation.

According to pensioners association Anbo, the country has a shortage of some 80,000 homes targeting older residents, the Financieele Dagblad reported earlier this month.

Anbo says the housing market is currently too geared towards family homes. ‘Society is getting older, people are living longer and that means their housing needs are changing too,’ says spokeswoman Atie Schipaanboord.

One example of the sort of housing which could be brought back are hofjes – mini developments of small homes around a central courtyard, which were popular in the Netherlands in previous centuries.

Other aspects to consider include ensuring bathrooms are big enough to accommodate both resident and a nurse, and that floors are all the same level, Anbo said.

Apartments

‘Many older people want to move to an apartment, but there is often very little available in terms of location, affordability and amenities,’ Delft University professor Marja Elsinga told the paper.

This means, for example, that people remain living in family homes, reducing the availability of property for young families. ‘This is slowing down the entire housing market,’ Elsinga says. She wants local authorities to give more priority to developing affordable and suitable housing for older people.

‘And that means [councils] accepting lower land prices and developers making compromises as well,’ she says. ‘If they really want to, they can do it.’

Dutch housing minister Kajsa Ollongren told the Provada real estate fair in November that the Netherlands needs to create 845,000 new homes over the coming 10 years.

‘In 2021 there will be more government money to innovate and invest,’ she said.  In particular, the government is working to speed up decision-making about 14 major locations for residential developing, which will involve 60,000 new homes.

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Rotterdam gets creative with cereal factory site

Plans have been launched in Rotterdam to redevelop a former cereal factory on the harbour front into a lively urban area with shops, offices, cultural units and cafes, as well as 1,500 new homes.

Part of the massive factory building, considered to be an important part of Rotterdam’s industrial heritage, will be transformed into housing, while a new residential skyscraper, 220 metres high, will be built close by on the 1.8 hectare site.

‘An important part of Rotterdam’s industrial heritage will be given a wonderful new function and the area will become part of a new, lively Katendrecht district,’ city housing chief Bas Kurvers said.

Half the housing will be affordable – that is with a monthly rent of up to €1,000 or a purchase price of €310,000.

The green cube, which is lit up at night on the roof of the factory, will remain a key part of the city’s skyline after the project has been completed.

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Work starts on Titaan project in The Hague

Work has started in The Hague on building a new creative company hub on a former 146 hectare industrial area, which is being transformed into a modern urban district.

The Titaan project involves the development of over 11,200 square metres of offices, workshops and community spaces – enough to house 70 companies and 350 shared desk placements.

When completed in 2022, the Titaan will be almost energy neutral, with solar panels on the roof and it will be warmed via a district heating system.

City economic affairs alderman Saskia Bruines at the industrial area

‘The Titaan will strengthen the attractiveness of the Binckhorst district as a business location and helps meet demand for working space,’ says city economic affairs alderman Saskia Bruines. ‘Entrepreneurs are the driver of our local economy so this is essential.’

The Binckhorst is a former industrial area which will have a mix of homes, offices and shared workspaces focusing on innovation and creative companies when completed. Close to the HS railway station, it offers a wide variety of opportunities for developers.   

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Rotterdam brings affordable housing back to the city centre

An initiative has been launched in Rotterdam to develop 1,300 new homes on the Hofplein in the centre of the port city. The project, which is backed by the city council, involves redeveloping the south eastern part of the square with homes in a variety of price classes, plus a hotel, offices, cafes and public areas.

‘Lots of people want to live in the city centre and this plan brings housing back to the heart of Rotterdam,’ said city housing chief Bas Kurvers. ‘Half of the homes will be classified as affordable, and will be available for police officers, teachers and nurses.’

Over 200 rent-controlled homes will be demolished as part of the RISE project and their current tenants will be able to return to the location once the new project is completed.

The Hofplein forms an important entry to Rotterdam and the redevelopment project also includes giving more space to pedestrians and cyclists. The current roundabout, which features a large fountain, is also being redeveloped into a city park as one of helping to solve some of the green challenges facing Rotterdam.

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Amsterdam prison redevelopment project Bajeskwartier includes incubator for artists

Bajeskwartier, a new residential area on the site of a former prison on the outskirts of Amsterdam, will include a special ‘incubator’ for artists who are finding it increasingly difficult to find affordable studio space within the city boundaries.

As Dutch inner city areas are redeveloped and upgraded, the old industrial spaces loved by experimental artists are becoming increasingly short in supply. But developer and Holland Metropole partner AM was happy to ensure the Bajesdorp artists village, first established on the site by squatters in 2003 could remain, albeit in a different form.

The incubator development is now at the planning stage and once the green light has been given, a new building will be erected on the site of the former director’s home. The ground floor will have a café, theatre and music studios and a space for performances. The three upper floors will offer housing and ateliers of 15 to 25 square metres to 10 artists in residence.

The cost of the project is put at €2.5m, of which 65% has been covered by a mortgage by a German cooperative bank. The rest of the funding is being raised via a ‘crowd-lending’ campaign. The 10 residents will each put €5,000 into the fund but will not own their homes. Instead, the building will remain in the hands of a cooperative to preserve the space for future generations.

Once completed, the complete Bajeskwartier district will have 1,350 new homes, offices, commercial functions, shops, restaurants, a hotel, urban farming and workshop space, in addition to the incubator for art and alternative lifestyles. Bajeskwartier will be energy neutral, with heat pumps to provide winter heating and all organic waste created in the district will be used to produce electricity.

‘Sustainability and climate adaptive development are key in this project,’ AM chief executive Ronald Huikeshoven told Holland Metropole magazine earlier. ‘In fact, 98% of the building material salvaged from the demolition work will be reused. We want to respect the site and its history.’

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Rotterdam park projects will help tackle climate change

Planning chiefs at Rotterdam city council have published a which are creating attractive public places for people to meet, socialize and exercise, while helping to solve some of the challenges facing urban development in the Netherlands.

The total cost of the investment in the seven projects is put at €233m and work on them should be completed by 2030, city officials say.

The new parks, squares and open spaces, filled with plenty of trees and greenery, will help reduce heat-related stress, absorb excess rainwater and provide new places for residential development by tackling noise and air pollution. They will function, planners say, as green lungs for the city.

In addition, the projects will provide years of work for a large number of people, Bert Wijbenga, the city’s planning chief, told the NRC earlier. ‘They will contribute to our mobility strategy,’ he said.  ‘They will make it possible to build more homes and make the city greener and more sustainable.’

The seven projects are being approached in an integrated way and will also act as a driver for further neighbourhood improvements.  Together, the projects involve planting 700 trees, creating green spaces the size of 20 football pitches and planting 10,000 square metres of green roofs. The overall impact will also boost property values in the area by 15%.

One of the projects involves creating a new park in the former port area on both reclaimed land and old industrial sites. The Rijnhaven park plan includes developing floating green spaces to sit and socialize as well as plans to build 2,500 new homes.  

The Hofbogen is another city park development, situated this time on a two-kilometre stretch of a former railway viaduct that crosses several residential areas.

In all, the seven plans mean a further 17,000 Rotterdam households will live no further than 200 metres from a green space.

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Housing crisis calls for greater cooperation, says home affairs minister

Dutch home affairs minister Kajsa Ollongren has told this year’s Provada real estate fair that local authorities, housing corporations, construction firms and developers need to work more closely together to make sure that enough new homes are being built.

 ‘We need to create 845,000 new homes over the coming 10 years,’ Ollongren said in a video message. ‘Like this year, in 2021 there will be more government money to innovate and invest.’

 In particular, the government is working to speed up decision-making about 14 major locations for residential developing, which will involve 60,000 new homes,’ she said.

At the same time, eight of the 12 Dutch provinces are on target to develop enough homes, ‘and that is good news’, the minister said.

Challenges

Nevertheless, the challenges ahead will require a stronger real estate sector, Ollongren said. ‘Local and provincial authorities should do more to allocate land for development more quickly. Investors and housing corporations should ensure there are enough affordable homes. Developers will have to do their best to create sustainable and attractive locations while builders will have to build both quickly and to innovate.’

Henk Jagersma, who heads the spatial planning department at Amsterdam city council, said in a video debate following the minister’s speech that the current government has worked hard to put housing on the agenda.

‘But are they doing enough to restore the balance in the housing market?’ he said. ‘Can we do more to speed up the processes and solve issues such as nitrogen compound pollution and noise?’

Peter Kievoet, Director of Economic affairs, Mobility and spatial planning in The Hague told the debate he and other local authority officials would like to see more tailor-made solutions for particular housing crisis problems.

‘This is not just about the home affairs ministry, but about other ministries, about national government in general,’ he said. ‘I have completely different discussions at the home affairs ministry than I do with farm ministry officials.’

The need for the big Dutch cities to work closely with developers and investors is one of the driving forces behind the creation of the Holland Metropole project.

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Converted offices create thousands of new homes

Developers created 12,500 new homes in empty schools, office blocks and retail spaces in the Netherlands last year, according to new figures from the national statistics office CBS.

Together they accounted for 13% of the 71,000 new homes realised in 2019. Almost half the conversions came from transforming redundant or outdated office blocks.

Holland Metropole partner Rotterdam was top of the list – conversions accounted for 37% of the new homes on the market in the port city last year. In The Hague, 23% of new homes were conversions and in Amsterdam 17%.

In Eindhoven, the repurposing of buildings is also beginning to gather steam. In the city centre, for example, the former V&D department store is being converted into a mix of retail and residential property.

The upper floor is also being taken over by Microlab, a flexible working space company which will include studios, meeting rooms and a sky bar with views over the city.

The trend of converting shops and department store premises into residential and mixed use complexes is likely to continue. A recent report by real estate research group Locatus said that more retail space is likely to remain vacant in the coming period, as the coronavirus epidemic continues to boost the shift to online shopping, and fewer tourists visit popular holiday destinations such as Amsterdam.

It estimates the vacancy rate will grow from almost 8% to 10% next year, and that medium-sized cities, not the big urban conglomerations like Rotterdam and Amsterdam, are likely to be hardest hit.

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Public and private sector must work together on affordable housing: ULI

The relationship between the public and private sector must be improved to make sure there is enough housing for people in the Netherlands with average incomes, according to a new analysis by the Urban Land Institute (ULI).

The report is further evidence of the need for alliances such as the Holland Metropole project, which was set up to highlight the development and investment opportunities in the Netherlands’ five biggest cities and to boost cooperation between government and the real estate sector.

The report says people with average incomes continue to be squeezed out of the housing market in the Netherlands’ bigger cities, and the main reason is the chronic lack of building land available for affordable home construction. This is an issue Holland Metropole members continue to highlight.

‘National, regional and local governments play a key role and have to start developing a long-term vision,’ the report, Promoting Housing Affordability states. ‘Then there will be certainty for developers who have to be encouraged to build mid market homes.’

‘The only way to guarantee a proper housing supply for people on average incomes is to make sure everyone involved understands the risks and the level of certainty. Only then can long-term relationships flourish which lead to change.’

One simple problem area highlighted in the report is that of regulations about how many parking spaces need to be provided for each property – which can mean more land is given over to parking than housing.  But changing this requires changes to zoning laws which have to be negotiated with local councils.

Mobility is a key part of the Holland Metropole approach and many projects involving Holland Metropole partners include commitments to replace car parking with car sharing and other mobility schemes.

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Rotterdam goes for better balance

Rotterdam has drawn up a long-term plan to improve the balance of the city’s housing supply, to reflect the changing population, which has become richer and better educated in recent years.  

‘We will improve the balance between cheap, mid-market and expensive homes, so that Rotterdammers can move within the city itself,’ says city housing chief Bas Kurvers. ‘Rotterdam needs to be a great city for people from every income group to live in, so we are working with housing corporations, developers and construction firms to make sure this happens.’

Despite the pressure on the Dutch housing market in general, Rotterdam remains a fairly affordable city to live in, but more needs to be done to boost the housing supply. Over the past two years, work has started on projects to provide 7,252 new homes and 6,100 units have just had the green light from national government for extra subsidies.

In particular, the city authorities plan to focus on more housing for young families and youngsters starting out on the housing ladder. This means, for example, that 40% of the homes being built in the Feyenoord City project will fall into the €720-€1,000 a month rental sector. The city has also reached agreement with the developers to make sure the rents remain low for the next 15 years.

In addition, officials are drawing up extra measures to encourage the elderly to downsize, and to help people whose income is above the social housing threshold to move into slightly more expensive property. This, they say, will free up more social housing for people on low incomes. Nevertheless, the proportion of social housing in the city will still be around 57% in 2030, which is more than needed for the number households who actually qualify for rent-controlled properties.

Meanwhile, Rotterdam is also starting a pilot for tiny houses and has opened applications from groups of private individuals who want to build up to 15 of the eco-friendly properties in a green part of the city’s Zuidwijk district. 

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Dutch government reaches deal to subsidise building 51,000 new homes

The Dutch government has made an agreement with provincial and local authorities about spending €620m to subsidise the building of 51,000 new homes in the short term.

The government agreed last year to put €1bn into housing in an effort to speed up developments because of the shortage of rental and owner-occupier homes. According to some estimates, the Netherlands will need 845,000 new homes by 2030.

In total, 27 projects have been given the green light, involving a number of Holland Metropole partners in the Amsterdam region, The Hague, Eindhoven, Rotterdam and Utrecht.

Affordable

Some 65% of the new homes will fall into the affordable housing category, including some 6,000 cheaper owner-occupier flats and houses. Some will target seniors and starters on the housing market, and some will focus on students.

The subsidy amounts to € 5,690 per home. None of the projects could be built without extra financial help, for a variety of reasons, housing minister Kajsa Ollongren said. ‘Much of this is due to the investment needed to connect the project to public transport routes,’ she said.  ‘Almost all the projects involve far reaching measures to make the location suitable for building.’

Twelve of the projects involve redeveloping old industrial sites, such as the Binckhorst in The Hague, the Rotterdam Feyenoord City scheme and Utrecht’s Merwedekanaal zone. Work on most of the projects will now start next year.

Speed

Now the funding has been agreed, minister Ollongren said she hoped work on the projects would start as soon as possible. ‘We have to make haste in building more affordable homes to give starters and people on low incomes more opportunities in the housing market,’ she said. The government is contributing €290m of the total subsidy bill.

Local authorities had put forward 52 plans for consideration, and some of which will be resubmitted in October after adaptations are made, the minister said. She has set aside €225m in government money for the second batch of projects.

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Rotterdam starts permit-free house building

Rotterdam city council has launched an innovative project giving would-be home owners more freedom to build their own homes or redevelop existing housing in a project known as Architect aan Zet – which loosely translates as ‘over to architects’.

City officials hope that the scheme will speed up the supply of new homes in the city, by removing red tape and lengthy licencing permit processes, while putting architects back in control of small-scale projects. 

‘Lots of people want to live in Rotterdam and the Architect aan Zet scheme will let them build or rebuild a house that fits their needs,’ alderman Bas Kurvers said. ‘In this way, the concept is contributing to Rotterdam’s housing stock.’

People who want to build their own home, or add an extension or roof terrace, will be able to do so without a permit or special fees, as long as they use an approved architect to design and oversee the process, and the project meets city zoning rules. 

The plan, which is a first for the Holland Metropole region, has been approved by the cabinet on the basis of legislation brought into boost the Dutch economy in the wake of the coronavirus crisis. 

The scheme can be applied in large parts of the city, but not to listed buildings or in conservation areas and city officials will carry out ‘reality checks’ to make sure no rules are being broken.

So far 16 architects have signed up for the programme, which was launched on September 1 and will run for an initial five-year period. More architects are expected to join in October.

More info: https://www.rotterdam.nl/wonen-leven/architect-aan-zet/

Architect: https://onsia.nl/

Picture: https://ossip.nl/

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Eindhoven may invest millions in city heating schemes

Eindhoven city council is considering investing millions of euros in developing city heating schemes in older parts of the city, in an effort to ensure residents are not confronted with high bills as the use of gas-fired heating is phased out.

City heating schemes, which use heat generated in biomass power stations or residue heat from industry, have a key role in the Netherlands’ plans to stop the use of gas in private homes by 2050.

Private companies and developers are likely to take responsibility for city heating schemes in new residential areas. But the high cost of laying pipes in the inner city make it crucial that Eindhoven itself has a role as a public partner, officials say.

Heat is currently provided by two biomass power stations, but officials agree that using wood chips to generate warmth is not a sustainable solution. The issue is also politically sensitive, and pressure has been mounting on national and regional governments to look for greener options.  

Unlike Holland Metropole partners Amsterdam and Rotterdam, Eindhoven does not have heavy industry producing heat which can also be tapped. However, research is also underway into the option of using thermal heat from either ground or waste water as a longer-term alternative.

The Netherlands is committed to phasing out the use of natural gas in private homes and industry in an effort to reduce greenhouse gases. New residential developments no longer have to be connected to the gas grid by law. Eindhoven officials expect city heating schemes to be an option for between 10% and 50% of the city’s homes.

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The Netherlands is affected less severely by the corona crisis than some other countries

The Dutch economy will shrink by 5% in 2020, assuming there are no more large-scale new restrictions needed to combat coronavirus, the government’s main forecasting agency said in its pre-budget report.

This contraction will be followed by growth of 3% in 2021, the CPB said in its summer forecasts, which form the basis of the government’s spending plans for next year.

Should large-scale physical contact restrictions be implemented again, the economy will also shrink in 2021, and unemployment will increase to 10%, the CPB said.

‘The Netherlands is affected less severely by the corona crisis than some other countries. But, make no mistake, the magnitude of the negative impact is unprecedented and, for the most part, still has to make itself felt,’ CPB director Pieter Hasekamp said.

Hasekamp said there will be a delayed impact in the form of unemployment and bankruptcies and that job and income security varies widely between sectors.

‘Moreover, now more than ever, it is important to look beyond GDP,’ he said.  ‘Neighbourliness, family visits and home schooling cannot be captured in economic growth figures. The corona crisis also has major consequences for things that affect quality of life.’

The CPB projections are based on government policy up to the end of July and so assume the government’s financial support policies will not continued in October.  However, some new form of support is very likely and prime minister Mark Rutte said earlier this month the cabinet is thinking ‘very carefully’ about what a third package of measures should include.

Ministers are currently finalising their spending plans for 2021, which is also an election year and the budget will be presented to parliament on September 15.

Photo: DutchNews.nl

https://www.cpb.nl/en/august-projections-2020-2021
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Landlords are keeping housing rent rises under control, new figures show

There is increasing evidence that landlords are keeping housing rents in check, according to new research by Dutch property management organisation VGM.

The research shows rents rose by an average of 1.4% per m2 in the second quarter of 2020, compared with the year-earlier period. At the same time, there was a 13.5% rise in the number of new contracts being agreed in Q2.

Rental prices are going up less than they were, and ’this is confirmation that institutional investors are adopting very moderate rental increase strategies in their long-term targets, without extra regulation,’ VGM chairman Eric Verwey said. Many Dutch private landlords, such as Holland Metropole partner Bouwinvest, have a strategy to moderate rent increases in the non-rent controlled sector, and have been taking tenants’ financial situations into account.

‘We do see that the square meter prices is going up slightly more than the ‘real’ rent, which shows more smaller units are being leased,’ Verwey said.  

Social housing rents in the Netherlands are already strictly controlled.  

Illustration: ‘For rent’ board on a property.

Caption: Landlords are moderating rent increases. Photo: DutchNews.nl

Source: https://vgm.nl/NieuwsDetail.aspx?RecID=92510

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Coronavirus crisis has no impact on residential deals

Investment in Dutch residential property has not been hit by the coronavirus crisis, and transactions to the value of more than €5bn were made in the first half of 2020, according to research by real estate news website PropertyNL.

The €5bn in transactions, up from €4.1bn in the same period last year, does not include investments in rental property by private individuals.

The total real estate market in the Netherlands reached €23.6bn last year, of which 34.5% –€8bn – was in rental housing. In the first six months of 2020, total investments were down, which indicates that residential property will have a larger share of portfolios, PropertyNL said, without giving exact figures.

‘The difference with the previous crisis is notable because then investments went down across the board, including in residential,’ PropertyNL’s editor Wabe van Enk said. ‘And less was invested in rental housing between 2008 and 2013 than in the first half of 2020. It could be that investors see rental housing as a safe haven.’

Dutch pension funds had an important role in new build projects in the first half of the year, PropertyNL’s research shows.

Foreign institutional investors such as Patrizia, Heimstaden, Round Hill and Catella are among the big foreign buyers of existing residential property, accounting for around one third of total deals.

Source: PropertyNL

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Coronavirus crisis has little impact on house prices in the Netherlands

The coronavirus crisis has had little impact on the Dutch housing market so far, estate agents and statisticians say. House prices rose by an average 7.7% in May, although fewer properties are changing hands year on year, according to the latest figures from national statistics agency CBS and the land registry department.

House prices have been rising steadily since June 2013 and have now reached their highest ever level, the CBS said. The number of million-euro homes in the Netherlands rose last year by more than a fifth to 65,000, according to property researcher Calcasa. Figures from the Dutch real estate agents association NVM reinforce the view that the coronavirus crisis has yet to have an impact on the housing market.

In the first month of the crisis, 12% of the homes being sold cost more than €500,000, but that percentage has now risen to 17%, the NVM said. ‘This data relates to the current situation, but on the basis of these facts, we would definitely distance ourselves from negative forecasts,’ NVM chairman Onno Hoes said in June. ‘When buying or selling a home, people think long-term.’ The NVM also notes that the number of properties available for rent has risen by some 13% compared with pre-crisis levels, as homes which are rented out permantly via platforms like Airbnb come on the market.

Copyright image: http://www.haagsehoogbouw.nl

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Amsterdam agrees deal to build 2,000 new homes for the elderly

Amsterdam has reached agreement with developers, housing corporations and investors to build 2,000 new homes in special complexes targeting the over 55s.

City officials have identified 10 locations for the projects, which will be awarded to developers on the basis of best plans rather than highest price. Several Holland Metropole partners are involved in the agreement.

‘This is a good first step,’ said Erwin Drenth, director Dutch healthcare investments at Holland Metropole partner Bouwinvest. ‘The enormous demand for housing for seniors is a challenge for companies, healthcare groups and the city authorities. But the city has a key role. I consider it crucial that more local authorities make policy with concrete targets to deal with housing for the elderly.’

The decision to open the complexes up to the over 55s has been taken deliberately, in the hope that younger residents will assist their more vulnerable neighbours. Officials are also looking at the option of setting up shared living spaces, targeting people with the same cultural background.

Some 100,000 people in Amsterdam are over the age of 65 but this expected to rise to 150,000 by 2030.

‘Amsterdammers often live in homes which are unsuitable to grow old in,’ alderman Laurens Ivens said. ‘We know 14% of Amsterdam’s elderly population would like to move and 19% live in homes which are too big for them. If you build special housing for the elderly, that frees up a family home. It is a win win situation.’

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Green light given to Utrecht’s urban forest

Utrecht city planners have given the green light to the twin tower Wonderwoods project. The 410 home apartment block will be located in the centre of Utrecht, creating a vertical forest of over 300 trees. Work is slated to be completed at the end of 2023.

Wonderwoods, officials say, is contributing to the creation of a healthy urban environment by integrating nature in both its design and construction. In total, the complex will have one hectare of forest – 360 trees and 10,000 plants – when completed. The vegetation is based on local species and will absorb 5,400 kg of CO2 and return 41,000 kg of oxygen in its place, helping to boost air quality.

Part of the complex will be open to the general public and it will also include restaurants, a gym, retail, a place for digital art and a Vertical Forest Hub: an education centre focusing on sustainability and nature.

More information www.wonderwoods.com

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Developers and cities urge Dutch government to take action on housing

An alliance of 17 organisations and companies, including Holland Metropole cities, developers and investors, have joined forces to keep up the pressure on the Dutch government to take urgent action to boost the supply of housing.

They say the Netherlands needs to build at least 90,000 new homes a year up to 2030 to catch up on the enormous shortage of residential property – which some estimate to be currently around 330,000 units.

In particular the alliance wants the government to free up billions of euros to help realise the target, some of which would be spent on preparing new land for development and some of which would go on readying brownfield sites.

‘Local authorities and developers do not have enough money to make such large financial commitments in advance and we are asking the state to help them with plans and guarantees so investors know where they are in the coming 10 to 15 years,’ Desiree Uitzetter, of Holland Metropole partner BPD and developers’ lobby group Neprom, told the Telegraaf.

At the same time, the alliance says new residential developments should be an example of how to build energy neutral and climate proof housing, and that good public transport and bike infrastructure are crucial. At least 50% of the new homes, they say, should be allocated to people on low or average incomes.

Earlier this month, the home affairs ministry published its own vision on the future of residential construction, saying that the Netherlands needs 845,000 new homes in the coming 10 years.

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Utrecht reaches for the sky with MARK

Holland Metropole partner Utrecht is developing together with KEES (Koopmans Bouwgroep (TBI), J.P. van Eesteren (TBI) and Stadswaarde) a new high-rise project with 1,125 homes in the Leidsche Rijn city district of Utrecht, The Netherlands. 60% of all homes will be reserved for people with low or moderate incomes or people with need for special health care.

The project, named MARK, consists of three residential towers ranging in height from 80 to 140 metres. The design is that of a vertical village with patios and green gardens on multiple levels of the complex. Residents can meet, relax and exercise in various places and levels in and outside the buildings. The complex will also have 3,500 places to keep bikes and shared e-bikes and 100 places for shared e-cars for residents to use. When completed, MARK will be the tallest building in Utrecht, outstripping the famous Dom cathedral tower.

Holland Metropole partners Syntrus Achmea and KCAP are also involved in the project.

More information: https://www.mark-utrecht.nl/ 

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