The Achmea Dutch Residential Fund invests in homes at locations in promising residential areas in the Netherlands. In so doing, we contribute to the portfolio with properties tailored to the market. That means you can expect excellent lettability and a solid value development for the next few years. Our portfolio is regularly assessed in terms of needing refreshing and degree of sustainability.
The Dutch residential market is starting to show signs of overheating, certainly in the major cities. The number of private properties and rental homes is dropping so swiftly that this puts pressure on the volume of transactions. Both the market rent and the investment value of residential properties are thus rapidly decreasing. What does this mean for investors? Above-average returns. That concerns both Dutch and foreign investors.
Competition is intense, the investment product is scarce and the investment outlooks are favourable. This means parties are prepared to run a greater risk. This can be seen in investments in smaller towns, as well as in the increased investments in niche products such as student accommodations, micro apartments and building or land positions. The price pressure means this type of strategy can also lead to a higher return. We expect returns on the residential market to starting normalising from 2019 onwards.