Matthijs Korevaar, Associate Professor in the field of the housing market at Erasmus School of Economics, contributed to an article by het Financieele Dagblad on the increasing sale of rental properties by real estate investors. For example, there are currently said to be about as many rental homes being sold as being built.
Due to the pressure of higher interest rates and new legislation, many real estate investors are selling their rental properties. At first this was only seen among small private investors, but new figures from Kadaster show that this is increasingly happening among larger real estate investors as well. What is noticeable is that the total stock of homes owned by real estate investors grew slightly in the second quarter. This is partly due to new construction and the splitting of existing homes.
According to Korevaar, we are now at a point where about as many rental homes are being sold as are being built. Never have there been so many homes being sold as in the last three quarters. Korevaar also calls it remarkable that not only private investors have started to sell more properties, but also larger institutional parties. These larger investors have large portfolios of homes and selling these homes is a huge change in their strategy, which therefore takes time.
The selling occurs mainly for relatively inexpensive homes, which if they were not sold would fall under the middle rent law, Korevaar points out. So, the rent on those homes would have to decrease under these regulations. If many of these homes are sold now, Korevaars says this could lead to a shrinkage in the number of affordable rental units.
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You can download the full article from het Financieele Dagblad, 20 August 2024, above.