Real estate transformation gives a housing market push in the back
To resolve the housing shortage in the Netherlands, around 1 million new homes are needed until 2040. New construction makes the most important contribution to a growing housing stock. For owners of existing real estate there are also other, interesting options. Are you already actively transforming (office) building into homes?
With real estate transformation, vacant buildings, such as offices, social real estate and healthcare institutions, are temporarily or permanently a new destination. A third of the vacant offices in the Netherlands can be converted into homes, taking into account location, liveability and embedding in a neighborhood. This share is higher with social real estate, because vacant schools, churches and care homes often fit well with the accommodation of specific target groups in terms of location and structure. Did you know that up to 15% of the current home demand with transformation can be realized? (Source: Netherlands Enterprise Agency)
From office to (rental) home
Almost half (46%) of all homes from transformations have been realized in former office buildings. In 2019 that was 5.7 thousand new homes. Most transformation houses are in Rotterdam, Amsterdam, The Hague and Capelle aan den IJssel. Homes that have been added to the housing stock by transformation are often rental homes (84% in 2018) with an area of 15 to 50 m2 (45%). Most rental properties are in possession of landlords other than housing associations, such as companies or institutional investors.
Residents of the homes created are usually young and single. (Source: CBS) This includes students and young people, labor migrants, seniors, expats and permit holders.
The benefits
Real estate transformation makes an important contribution to the reduction of the housing shortage at the local level and the structural vacancy problem (and impoverishment) in the office and shop market. Transformation can also contribute to compacting and making the built -up environment more sustainable, for example by transforming an office building with label D into an apartment building with label A+. (Source: Rabobank)
Curious about the transformation options of your real estate? Please contact Build Finance.
