|
contents | business | |||||||||
| Residential investment volumes in the Netherlands top €1.7bn according to Savills The latest residential research from international real estate advisor Savills finds that 2014 saw substantial foreign capital entering the Dutch market pushing total investment volumes up to €1.7 billion compared to €1.3 billion in 2013. With several large portfolios currently in the market including Vestia, Lips and WIF, volumes are predicted to exceed €2 billion by the end of 2014 according to Savills. Jan de Quay, director of investment at Savills Netherlands, comments: "The market fundamentals of the Dutch residential market, namely growing demand, limited supply and relatively low but growing price levels, make it a very interesting asset class for both domestic and international investors. The latter of which we have seen increasingly active over the last five quarters and more than a dozen international investors currently expressing interested in investing here." Savills reports yields have contracted by 10 basis points over the last few months and are now at 5.15% where they are predicted to remain for the remainder of the year. The firms states that major demographic trends that will shape the future housing market are the increasing number of single-person households, the ageing of the population and the concentration towards the largest cities. Therefore new developments should focus on producing smaller homes in the core cities. The housing market is a highly regulated market and adjustment of legislation generally has substantial effects. Jeroen Jansen, head of research at Savills Netherlands, comments: "Regulations for housing associations have become more strict and the landlord tax will remain in place after 2017. Combined with a three year fixation of the maximum rent level of social housing at €699.48, this will likely increase the volume of regulated and non-regulated housing offered to the market." write your comments about the article :: © 2014 Construction News :: home page |