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 

Dutch housing minister Mona Keijzer has published new rules to speed up residential housing development in the Netherlands, including placing restrictions on the right to appeal and making it easier to build in rural areas.

The aim of the measures is to ensure that enough affordable housing is built, that procedures are shorter, and that everyone has an equal chance of getting a home, the minister said.

The legislation, Keijzer said, will “provide legal instruments for government and local authorities to work more quickly with the private sector in building both sufficient and the right kind of housing. It is also important to ensure that people with an average income have the opportunity to find an affordable home in every local authority area.”

Cutting red tape

Current planning rules state that applications for new residential locations should be supported by evidence that there is a need for housing in that particular place, limiting development outside current town and city boundaries.

This procedure requires additional research, time, and costs and will therefore be scrapped, the minister said, adding that this will make it quicker and easier to build outside existing urban areas.

In an effort to cut down on protests, protesters will only be allowed one legal appeal instead of two in projects of more than 12 units, and the ruling must be made within six months, the minister said.

30% social housing

The new rules also state that two-thirds of new builds in the Netherlands should be accessible to people on low and average incomes and that 30% should be social housing on a regional rather than a project basis. This was agreed at December’s housing summit between the government, developers and investors and marks a shift in the current project-based percentages.

The rules also make it easier for homeowners to build a “granny flat” on their property without a permit and simplify the regulations for sustainable construction.

Affordability a challenge

“The measures are a step in the right direction, but still more can be done,” said Dutch developers’ organisation Neprom in response. In addition, affordability remains a challenge, Neprom said.

“The agreement that two-thirds of new developments should be classed as ‘affordable’ is becoming increasingly difficult to realise,” Neprom said. “What does help is that planning procedures are now being made uniform and agreed at a regional level.”

Photo: Depositphotos.com

In total 82,000 homes were added to the Dutch housing stock last year, including new build, repurposing old buildings and subdividing existing units, according to new Dutch housing ministry figures.

The total is below the government target of 100,000 new homes a year and the dip is likely to continue in 2025, housing minister Mona Keijzer said. However, from 2026, when government measures begin to take effect, production will grow and from 2027, the target will be met, the minister said.

According to housing ministry statistics, plans for 1,021,000 new homes have now been drawn up.

Slashing red tape

“The measures we are now implementing will bear fruit in a couple of years,” the minister said. “But every step forward is an advance. Our main focus is to remove obstacles to new construction projections, such as local authority red tape, and make better use of existing buildings.”

In December the minister hosted a housing summit with developers, investors, construction firms, local and regional governments, and housing corporations who all signed an agreement aimed at speeding up the development of new homes.

Developers’ organisation Neprom was among the signatories of the deal. “The time for sitting back and waiting for problems to resolve themselves is over,” said Neprom chairman Ronald Huikeshoven. “We have all made difficult decisions to meet each other halfway and look at how things can be done.”

Affordable housing pledge

The signatories to the deal have committed to ensuring that two-thirds of all new developments at the regional level will be “affordable,” and that, in time, 30% of the new properties will be social housing, with rent caps and income requirements for tenants.

This marks a shift from the previous government’s emphasis on ensuring affordable housing in every project. The government has also pledged additional funding to cover the immediate costs of expanding the social housing supply, provided that local councils contribute 50% of the funding. This may well prove a stumbling block, given central government is planning to cut local authority funding.

At the same time, minister Keijzer acknowledged that uncertainties remain around infrastructure issues that need to be addressed, including electricity grid congestion, nitrogen emissions, green spaces in and around cities, and flood risks. She has set aside €2.5 billion to help ease these problems.

Standardisation and less red tape

The signatories have also agreed to standardise rules and regulations, meaning that local councils can no longer impose their own rules on top of those set by the national government. The government itself will no longer introduce regulations that go beyond those agreed at the EU level – a decision which led the minister to earlier tear up the requirement that all new property includes bat and bird boxes.

However, developers are still concerned about the challenges of delivering enough affordable housing and say the financial coverage remains uncertain. “We hope that the agreements made… will provide enough leverage for our members to invest in housing construction in a way that makes economic sense,” Huikeshoven, who also chairs developer AM, said.

Holland Metropole members had earlier expressed concerns about the investment climate and the challenge they face to attract capital to invest in affordable housing.

Holland Metropole partner Achmea Real Estate has launched a new impact fund aimed at acquiring older rental homes and making them more energy-efficient and sustainable.

The Achmea Dutch Residential Impact Fund (ADRIF) is the first of its kind in the Netherlands and aims to reduce the number of rental homes with an energy label of D or worse. Approximately one million rental properties in the Netherlands fall into this category.

The funds will be used to purchase older, poorly insulated rental homes and make them more sustainable. These will primarily be housing complexes owned by large investors and housing corporations looking to sell part of their portfolio, or private investors with reasonably large portfolios. The fund will not purchase homes from individual owners.

Pension funds

Achmea has invested €50 million into the fund and invited other institutional investors, such as pension funds, to participate, with the goal of reaching €1 billion by 2030.

“Together, we face an enormous challenge in making existing homes in the Netherlands more sustainable,” said Achmea executive board member Daphne de Kluis. “We need to act quickly, and this requires considerable investment. Our investment is just the first step.”

Achmea plans to make the homes Paris Proof. The roofs, façades, and floors will be insulated, and HR++ glass will be installed throughout the properties. Additionally, gas-fired central heating systems will be replaced by electric heat pumps or connections to district heating schemes.

Cost to tenants

These measures, Achmea states, will lead to significantly lower CO2 emissions per home. Tenants will also benefit from more comfortable homes and significantly lower energy bills.

Tenants will experience a slight increase in rent to cover the costs, but when energy bills are taken into account, their total housing costs will remain the same or decrease slightly, provided energy consumption and household size remain unchanged.

“This means that the project will not only benefit the climate but also contribute to keeping housing affordable,” Daphne de Kluis said.

Annual return

The fund aims for an average annual return of 6% for participating investors, comprising direct rental income and the expected increase in property value. This, according to Boris van der Gijp, co-chairman of Achmea Real Estate, will enable institutional investors to contribute to meeting the Paris climate targets “while achieving an appropriate financial return.”

Holland Metropole partner Bouwinvest and two of the Netherlands’ largest pension funds launched their own social impact fund in December 2023 to boost the stock of affordable and care-related homes in the Netherlands.

The civil service pension fund ABP, one of the largest funds in the world, has committed €250 million, while the building sector fund bpfBOUW has contributed €150 million to the partnership. The focus of the Social Impact Real Estate Partnership is on housing for groups in the Netherlands who are currently struggling to find a home.

“Working in inner city locations demands more of developers given the complexity of current rules and the need to fit in with the community already there,” says Lonneke Zuijdwijk, who joined the management board of Heijmans Vastgoed as director this summer.

The Zuidwest development in The Hague is a typical example of a large and complex area development. The area, built in the 1950s, had become marginalised, with low-quality housing and poor facilities for the community living there.

“The first parts have been demolished and we have recently started the construction of the first new complex,” Lonneke says. “But it is not just about the bricks and the houses. It’s about the social impact we can make to change the neighbourhood by, for example, mixing owner-occupier homes with social housing and mid-market rentals.”

People living in the area have been widely consulted about the development plans, a key part of any major project, Lonneke says. “It’s about how you deal with the people who live there. It is also about education, and providing schools. It’s about work, playing fields, sports facilities, culture. This is something we really emphasis in our work.”

A complex project like The Hague Zuidwest, or the Hart van Zuid in Rotterdam, requires a specialized approach. “You have to look at a project differently, particularly in the early stages,” says Lonneke. “You have to form a connection with the people already living there and the entrepreneurs who work there. You need to listen to them and find out what is really needed. Sustainability, in the widest possible sense, is essential, and so is wellbeing. Wellbeing is a new factor and it highlights a change in how we approach projects.”

A more people-centred approach to development does make the job more complicated and requires different expertise. For example, Heijmans now employs ecologists and sociologists to help ensure that its targets are met. Boosting biodiversity and climate adaptation are also areas where advances can still be made, she says. European legislation will also be helpful in encouraging the sector to take further steps.

In addition, Lonneke is keen to see increased industrialisation in the sector, which she says boosts efficiency and frees up time to focus on other areas. “People are sometimes critical about industrialisation but we think if you use modular buildings, you have more time to focus on the environment, building on biodiversity and creating a community. The building itself is just one element in an area development project. More than that modular building has become much more varied and flexible as well.”

While sustainability is now a key part of any project in the Netherlands today, more can still be done in terms of improving construction materials such as circular concrete and wood  Heijmans has for example its own factory producing timber framing for homes.

“We have to deal with sustainability, affordability and all the rules associated with these issues, which are all together making it difficult to speed up the development of residential property,” she says. “But when you look at the social impact of the shortage of housing, you know all stakeholders involved in area developments have to get moving.

Meet Lonneke Zuijdwijk and the rest of the Heijmans Vastgoed team on the Holland Metropole stand at Expo Real which runs from October 7 to 9. Hall A2, stand 130

Illustration: Dreven, Gaarden, Zichten is part of The Hague Zuidwest area development

The Holland Metropole region is continuing to excel in terms of connectivity and infrastructure, according to the latest research by The Business of Cities.

Air passengers are a first visible sign of how special the region is and the three main Holland Metropole airports welcoming nearly 80 million passengers in 2018. This put the region ahead of Hong Kong and Singapore, and just behind the San Francisco region, the report said.

Passenger numbers have grown faster than in other regions with a year-on-year growth of just above 4% and, the researchers say, among regions of fewer than 10 million people, Holland Metropole may become the world’s leading aviation hub in the next decade.

The region is also an important cargo hub but, the researchers say, its super- connectedness stands out most of all in its internal connectivity. ‘Its polycentric character means the region offers the unique ability to connect multiple large cities directly by rail. Other regions, by contrast, have inherited a pattern of growth around a single centre which has reduced access to jobs and other key urban assets,’ the report said.

The region boasts an average travel time between the five centres of just over 50 minutes (second only to Greater Boston) and an average speed of around 85km/h (third only to Munich Metro and the London region).

Holland Metropole’s special connectivity is also reflected in the fact that it is the only region among its peers to provide direct rail travel between all its major centres, making living in Rotterdam, working in Amsterdam and going out to the theatre in Utrecht a realistic option.

At the same time, Holland Metropole’s digital infrastructure platform remains very strong by global standards. Having a strong digital infrastructure boosts digital workforce skills, internet usage and access to smart services, so it is unsurprising, the report notes, that Amsterdam, Rotterdam, Eindhoven and The Hague all recently ranked in the top 20 cities in Europe for the number of people working in jobs in the ‘app economy’.

Amsterdam’s Zuidas business district is to get more homes, offices and even a cinema in a new project on a brownfield side between the A10 ring road and the sports centre. De Puls, a development by Holland Metropole partner VORM, will add 56,000 square metres of space to Zuidas when completed in 2023.

‘Zuidas is becoming an increasingly lively city district,’ says Zuidas director David van Traa. ‘This innovative building is future proof and, thanks to all the facilities which will be open to the public, a big plus for the district as a whole.’

The building itself will generate its own electricity thanks to solar panels on the roof and the façade, and will be completely energy neutral. The complex is also built around the maximum use of public transport, bikes and walking. The car park will only be accessible to electric, shared vehicles.

A large proportion of the apartments in De Puls will be middle market rentals, helping to boost the amount of affordable housing in the district. ‘De Puls combines diversity, affordable housing, working and leisure,’ says VORM’s director Hans Meurs. ‘We are creating ‘common ground’, where everyone feels welcome and at home.’

Holland Metropole partner MSVA Architects is also involved in the project and building work is slated to start in 2021.

With 33 full and associate partners, and five start-ups in tow, the Holland Metropole group is out in force at this year’s Expo Real trade fair in Munich.

The Holland Metrople partners include investors, developers, architects and planners and the stand will feature a wide range of projects across all real estate sectors.

‘We have so much on offer that it might prove a squash to show off all the scale models of the projects properly,’ says Annemieke Verwoert of the project team.

The Holland Metropole stand offers plenty of space for meetings and networking, including a bar and catering unit, plus a daily schedule of seminars and workshops.

Visit the stand in hall A2, stand 230