13-11-2024
Appearances are deceptive. At first glance, investing in Dutch mid-rent homes (up to €1156) seems to have become less interesting. After all, increased construction costs and rent restrictions in the Netherlands have led to low initial yields.
But a good momentum for investing in (middle) rental housing is actually emerging now, writes Achmea Real Estate in its Outlook 2025-2027. Interest rates have stabilised and there is clarity on the regulation of rents. Moreover, the lower initial yields in mid-rent are accompanied by a much lower risk due to the large target group: people who earn too much for social rented housing, but (often) too little to buy a house.
Institutional investors can additionally make an impact with mid-rent. After all, the shortage of middle-income housing in the Netherlands is a major social problem. Giving priority to tenants with key professions (such as teachers) and people leaving social housing can also add social value at local level.
In addition, making existing homes more sustainable is also attractive. Tighter regulations, such as EPDB IV, will further increase the value of sustainable homes. Institutional investors can buy existing complexes with low energy labels and make them more sustainable. This not only lowers the risk in their portfolio, but also contributes to lower energy costs for tenants.
Learn more: Outlook 2025-2027