Investment Update: Real estate investors redefine their course
The recovery in the real estate market continues cautiously, writes Peter Koppers of Achmea Real Estate in the new Investment Update.
INREV research shows that investors are again allocating new capital to real estate, with a strong focus on core strategies and sectors with stable fundamentals. Residential real estate remains the absolute favorite, particularly affordable rental housing and senior housing, a domain where impact, sustainability, and returns go hand in hand.
In the Netherlands, the residential and healthcare real estate market continues to offer attractive investment opportunities. The MSCI benchmark shows solid total returns across most property segments in the fourth quarter. Rising market rents and the ongoing scarcity of affordable housing support real estate valuations, while initial yields are slightly declining. Although investment volumes are still lagging, a gradual increase is expected in 2025.
The Investment Update pays particular attention to the tenants' perspective on the sustainability of residential complexes. The energy transition becomes tangible for tenants when lower energy costs and increased living comfort are partly reflected in the rent. This not only benefits residents but also strengthens the business case for large-scale renovations and sustainability investments. With the Achmea Dutch Residential Impact Fund, Achmea aims to accelerate the sustainability of the Dutch (rental) housing stock.