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.