International investors have plenty of opportunities for growth in the Netherlands, given that the housing shortage is increasing and rents are rising, according to research by Capital Value.

The Dutch housing deficit stood at 4.8% of the total stock at the end of 2025 and, with only around 70,000 homes completed that year, the shortage is expected to rise to about 410,000 homes, Capital Value said.

Government targets to reduce the deficit to 2% by 2031 and to deliver 980,000 homes by 2030 are, the report says, unlikely to be met on current projections, although the new government has pledged to do more to make the market attractive to international investors.

Much depends on a stable investment climate, fiscal measures, interest rates and the number of new projects, said Capital Value’s research director Thijs Konijnendijk. “It is important to keep stimulating the investment climate and the pipeline if we are going to reduce the housing shortage.”

Rental market shrinkage

The research shows the role of international investors in the Dutch rental market has shrunk to its lowest level on record, even though many told researchers they are still willing to invest if the investment climate is right. International investors accounted for just 7% of total transaction volume in 2025, well below the long-term average of 26%.

In particular, their combined rental stock fell to just over 72,500 homes, down from around 80,000 in 2024, as foreign owners sold properties to Dutch investors or private buyers.

Impact investing

The retreat comes at a time when the rental market is under growing pressure. A large majority of investors and housing corporations plan to sell more properties in the coming years, further reducing supply. Land Registry figures show that 26,180 rental homes were sold off individually in the past four quarters, as higher taxes and tighter rent controls have made long-term letting less attractive for investors.

Nevertheless, investors still have substantial capital available, and in total €27 billion has been earmarked for investment in Dutch rental housing over the next three years, Capital Value says.

In addition, institutional investors in particular are increasingly focusing on impact investing, incorporating affordability, ageing and care provision into their long-term strategies.