Real Estate Transformation: A Boost for the Housing Market
To address the housing shortage in the Netherlands, approximately 1 million new homes will be needed by 2040. New construction is the primary contributor to a growing housing stock. For existing property owners, there are other attractive options. Are you already actively converting your (office) building into homes?
Real estate transformation gives vacant buildings, such as offices, social housing, and healthcare institutions, a temporary or permanent new purpose. A third of vacant offices in the Netherlands can be converted into homes, taking into account location, livability, and neighborhood integration. This percentage is higher for social housing, because vacant schools, churches, and nursing homes are often well-suited for housing specific target groups due to their location and structure. Did you know that up to 15% of current housing demand can be met through transformation? (Source: Netherlands Enterprise Agency)
From office to (rental) home
Nearly half (46%) of all homes resulting from conversions were built in former office buildings. In 2019, this amounted to 5,700 new homes. Most of the converted homes are located in Rotterdam, Amsterdam, The Hague, and Capelle aan den IJssel. Homes added to the housing stock through conversion are often rental properties (84% in 2018) with a floor area of 15 to 50m² (45%). Most rental properties are owned by landlords other than housing associations, such as companies or institutional investors.
Residents of the newly created homes are typically young and single. (Source: Statistics Netherlands) This includes students and young people, migrant workers, seniors, expats, and permit holders.
The benefits
Real estate transformation makes a significant contribution to reducing the local housing shortage and the structural vacancy problem (and deterioration) in the office and retail market. Transformation can also contribute to densifying and making the built environment more sustainable, for example, by converting an office building with a D energy label into an apartment building with an A+ energy label. (Source: Rabobank)
Curious about the transformation possibilities for your property? Contact Build Finance.
