Hearing that thousands of new apartments are for sale might spark excitement (and maybe even a wave of relief) in you. Helaas, you probably won’t even get the chance with the €1.7 billion price tag.
The Canadian real estate investment trust, European Residential Reit (Eres), wants to sell 6,900 apartments and terraced houses throughout the Netherlands. Yes, that is a lot of housing, and we all know how valuable housing is.
So, you’re probably wondering why they’re letting go of their investment? Well, according to Eres CEO Mark Kenney, measures taken by the Dutch government mean that the tax climate in the Netherlands has become less favourable for the company.
Basically, Eres needs money
Capreit, Eres’ parent company, bought houses from other real estate funds throughout the Netherlands in 2016. However, current interest rates mean borrowing is difficult for the company. (Isn’t it for all of us? 👀)
READ MORE | Interest, inflation, and lower house prices: what does this mean for Dutch housing?
The sale of thousands of apartments in the Netherlands valued at €1.7 billion will allow Capreit to fill their not-so-little piggy bank with enough coin to invest in it’s home market in Canada. 💰
Apartment complexes owned by Eres, such as De Generaal in Rijswijk, will most likely be among the large number of apartments sold, reports AD. However, it’s not known whether private individuals like us mere mortals will be allowed to buy apartments separately.
Foreign investors discouraged
Transfer tax for investors has increased from 6 to 10.4%, which is a major reason why investors are being discouraged from investing in property in the Netherlands.
Another is the new rent regulation set by Dutch housing minister Hugo de Jonge. The regulation that will have landlords of private sector rental homes lowering rent will be put into place next year.
House prices in May 2023: CBS: #Netherlands #Amsterdam #Nederland #EuroArea #Residential #Property #Eurozone #Housing #RealEstate #HousePrices
— Apostolos Klitsoyiannis (@apostolos_kl) June 22, 2023
In May, prices of existing owner-occupied homes were on average 5.6% lower than in May 2022.
In April, owner-occupied homes were… pic.twitter.com/sdVe2bUHjp
While this may be music to our ears, investors aren’t too chuffed about it — which, we guess, is kind of the point.
You know those absurd housing prices that we all despise? Well, foreign investors are partly to blame. “They’re playing Monopoly with our houses and they’re just getting started. Houses are seen as an investment object to make a profit instead of something to live in,” said MEP Kim van Sparrentak last year.
Various countries, including the Netherlands, are taking measures to stop this so that private individuals have more of a chance of being able to afford their dream homes.
What do you think of the apartments being sold in one transaction? Tell us in the comments!
