In the lead-up to the general elections, Dutch political parties are placing housing firmly at the top of their agendas. The government has earmarked €5 billion to accelerate residential development, including €2.4 billion through Realisatiestimulans programme. This initiative supports municipalities with a €7,000 subsidy per affordable home that commences construction from 2025 onwards.The national target of delivering 90,000 to 100,000 new homes annually, a level last achieved in 1990, remains ambitious. In 2024, approximately 70,000 homes were completed, according to Statistics Netherlands (CBS). Alongside new-build efforts, increasing emphasis is being placed on repurposing existing assets. Urban transformations, rooftop extensions and co-living concepts are expected to unlock additional housing capacity, particularly in densely populated areas.To facilitate large-scale area development, the 2026 budget includes €2.5 billion for infrastructure including roads, public transport and utilities and €1.8 billion for water safety and climate-adaptive construction.
Investment climate remains resilient
Residential real estate continues to dominate the Dutch investment landscape. With €2.6 billion invested year-to-date in 2025, including €1.1 billion in Q3 alone, the sector accounts for 31% of total investment volume. This is largely driven by the divestment of existing portfolios and a growing shift towards the owner-occupied market.
The Affordable Rent Act is accelerating this trend, prompting institutional investors to engage in unit-by-unit divestment to private buyers. While consumer sentiment remains sensitive to interest rates, geopolitical developments and policy shifts, measures such as the expansion of the Dutch National Mortgage Guarantee (NHG) and increased transfer tax exemptions for first-time buyers are helping to restore confidence.
“Political uncertainty or abrupt policy changes can swiftly dampen confidence among owner-occupiers, underscoring how essential clear, predictable housing policy is to sustaining trust among both households and investors,” says Pascale Schellekens, Insight & Data Specialist at Savills Netherlands.
Signs of recovery
The 2025–2026 period marks a phase of cautious recovery. Stabilising interest rates and a more predictable macroeconomic outlook are contributing to renewed confidence among households and long-term investors. With sustained structural demand, evolving policy frameworks and significant infrastructure investment, the Dutch residential market offers compelling opportunities for those seeking stable, long-term returns.
Read the whitepaper here, including an analysis of the five cyclical phases of housing market sentiment from 2012 to 2024.