The Dutch government has announced a €500 million subsidy package for private investors to encourage more investment in affordable housing. 

New residential development along Amsterdam's IJ waterway

In total, the Dutch housing ministry budget includes €7 billion to speed up development next year and up to 2035, of which €940 million will be spent on the 21 large-scale residential development projects announced earlier. The subsidy amounts to €10,000 per home with a rent of between €932 and €1228 and will make it more attractive for private investors to put money into Dutch residential property, the ministry said on Tuesday.

In addition, local authorities will be able to apply for a €7,000 subsidy per affordable home built in their area and €180 million has also been set aside to subsidise land sales.

The government is also allocating €635 million for the development of more senior housing, on top of the €420 million already set aside. And, as announced earlier, the property transfer tax paid by private investors will also be cut from 8% to 7% in 2027. 

Support for international investors

Housing minister Elanor Boekholt-O’Sullivan is continuing with her predecessors’ target of building 100,000 new homes a year and research suggests €400 billion in investment opportunities are available for institutional and other investors. 

The minister has made attracting more international investors to the Netherlands a key part of her strategy and says this new package of measures will make the country a more attractive location for residential developments. It also includes investment in infrastructure, slashing red tape and cutting back on appeal procedures. 

Developers and investors have described the new measures as “positive” and say the new investment will improve investment options. 

Improving investment conditions

“The government is moving in the right direction by improving investment conditions and supporting housing delivery. That sends an important signal: international investors are welcome,” said said Mark Siezen, chairman of the Holland Metropole alliance and chief executive of Bouwinvest.

“More is still needed, particularly when it comes to tax conditions, predictable rental regulation and faster permits. But the direction is right, and we are confident the Netherlands can build on it.”

The minister will also publish an action plan this autumn containing 50 concrete measures to speed up housing construction, on top of the proposals published on Tuesday as part of the 2027 budget.