Dutch residential investors will have pumped a record €3.6 billion into new-build rental housing in the Netherlands by the end of this year, according to an analysis by Capital Value. At the same time, however, the report highlighted the absence of international investors, who will have accounted for just 1% of transaction volume in residential real estate in 2025.

Modern housing on the shore of a Dutch lake. Photo: Depositphotos.com

The high investment volume is driven primarily by increased activity among Dutch institutional investors, who invested a record €3.3 billion in new-build rental housing this year, according to the Capital Value report. These investments will deliver approximately 10,500 new rental homes in the coming years, of which 77% will be mid-rental and social rental housing.

The Netherlands has a shortage of some 400,000 homes and successive governments have focused on a target of 100,000 new homes a year. This year the total is likely to be no more than 77,600, the lowest figure since 2015, according to housing ministry figures.

Nevertheless, with €3.6 billion invested in new-build rental housing, the investment volume has doubled compared with 2024 and investments totalled €2.4 billion in the big five Holland Metropole cities, the Capital Value report said.

In particular locations in the urban central belt known as the Randstad continue to attract investors due to the presence of large target groups and expected population growth in the coming decades.

International investors

At the same time, however, the report highlighted the absence of international investors, who will have accounted for just 1% of transaction volume in residential real estate in 2025. In 2022 they accounted for almost one-third.

“This shows that despite the substantial commitments made by Dutch institutional investors, improvements to the investment climate remain essential,” the report said. “Housing production targets cannot be met without the involvement of international investors.”

“It is crucial that the new government introduces stable, enabling policies for investors,” said research director Thijs Konijnendijk.

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

Housing challenges 

Housing ministry secretary general Chris Kuipers told the Holland Metropole website this autumn that international investors bring something extra to the market.

 “They can often step in earlier and on a larger scale, helping to get major area developments moving,” he said. “Given the challenge we face, we simply need that kind of investment capacity. So yes — international investors are very welcome in the Dutch residential market.”

Talks are underway on forming a new government in the Netherlands between three centre-right parties and the housing market is one of the main issues on their agenda. Proposals so far include slashing red tape and the appeals process for new construction projects, as well as establishing 21 locations nationwide for new residential areas and towns.

In addition, the parties say, the subsidy system will be simplified and there will be extra investment in infrastructure and other provisions for major residential developments.

Investment volume

There may be signs of an upturn. In November, research published by Savills indicated that international investors accounted for 35% of the investment volume in Dutch real estate in the third quarter of the year and described the market as stabilising.

“The residential sector is also likely to remain a central focus for investors, underpinned by the Netherlands’ persistent housing shortage,” the report said. “The incoming government could play a crucial role in investor activity by providing greater regulatory clarity and alignment with investors’ risk–return expectations.”