Holland Metropole partner Bouwinvest has bought a 933-home project in south-east Amsterdam from fellow partners AM and Ballast Nedam. But Bouwinvest Residential Fund investment fund manager, Paul van Stiphout warns that the Netherlands will need plenty of foreign capital to ensure residential development continues.

An artist's impression of the new district

The Amsterdam development, which will include the highest residential tower in the Netherlands, is part of the new city district Eleven Square, located next to the Johan Cruijff Arena. 

The AM-Ballast Nedam development, spread across four buildings, will include 669 private-sector apartments for sale and rent, 454 student studios, offices, sports facilities, a theatre, a hotel, retail, restaurants and leisure options, all centred around a large public square. MVRDV was responsible for the main design. 

“We would like to realise more of this sort of project but that requires new capital and a more attractive investment climate,” Van Stiphout says. ‘We need €400 billion heading to 2035 to build enough homes.”

Pension fund investments

Dutch pension funds, Van Stiphout said, have invested more than a reasonable amount in Dutch housing over the past few years. “But nowadays, you don’t hear many pension funds saying they are going to invest billions in Dutch residential property.”

To meet housing demand, foreign pension funds and international investors need to be brought back, which will require stable government and policy, he said.

“A couple of small changes to current legislation would make the Netherlands more attractive compared with neighbouring countries,” he said. “Foreign pension funds have the same requirements as our pension funds. They are doing it for the postal delivery workers in Korea, in a manner of speaking, not for their own profit.”

Government policy

The Holland Metropole partners have repeatedly called on the government to encourage investment by international investors by ensuring stability in rental policy, shortening legal procedures and streamlining regulations for new construction.

The Netherlands has a housing shortage of around 400,000 homes, and successive governments have focused on a target of 100,000 new homes a year. This year’s total is likely to be no more than 84,000, according to the construction sector’s economic institute in January.

The housing shortage is one of the biggest issues the next Dutch government will have to tackle. Talks are currently under way on forming a new minority administration between two liberal parties and the Christian Democrats.

Work on the two residential complexes is due to start later this year, with completion slated for 2029.