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6 out of 10 banks will expand selected portfolio rental properties

Published on 08-06-2020

Banks remain willing to finance the Dutch residential investment market, according to research by Capital Value. Approximately 60 percent are interested in expanding the loan portfolio with rental properties, while the rest hold on to the existing portfolio. An important factor in the continued confidence is the shortage of affordable housing in the social or medium-rent segment.

Snijders: "Prevent plan development from being jeopardized after 2021"

For the study, Capital Value conducted a survey among the main financiers, from home and abroad, who together have approximately 60 billion euros in loans outstanding on the Dutch real estate market. All indicated to finance existing homes. 60 percent were also prepared to do this when it came to new construction projects. "It is positive that in addition to the pension funds, important financiers are also willing to finance projects that can be built in the short term," says Marijn Snijders, director of Capital Value. "To counter the increasing shortage, we must prevent construction production from falling," he looks ahead. "Given the housing shortage and the government's policy to add 75,000 homes per year, we must prevent the development of plans after 2021 from being jeopardized," warns Snijders.

Many existing and new investors

Capital Value sees the confidence of the financiers confirmed in the transactions since the Netherlands went into intelligent lockdown in mid-March. Capital Value has since invested in Dutch rental properties at more than 1 billion euros. "Many existing investors continue to buy and we also see new entrants," said Snijders. "Due to the high demand, there is hardly any price-depressing effect on transactions in recent weeks."