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Netherlands

Homebuilding expected to fall sharply next year, minister says

Housing construction in the Netherlands has stagnated under difficult market conditions. Public Housing Minister Hugo de Yongje announced that a sharp drop is expected next year. letter to parliamentannounced an investment to keep the decline as small as possible.

De Yongzi’s goal is to build 900,000 more homes in the Netherlands by 2030. But he faces major headwinds, he said in a letter to Tweed Comer.Soaring construction costs and rising interest rates create fear Investor and buyer. Financing projects is becoming increasingly difficult for developers, and as a result, housing projects are moving from scratch.

De Yongji said the plan needs time to adapt to new market conditions. So he expects to see a decline in the construction industry, especially in 2024, as the parties coordinate. The minister is committing €250-300 million to measures to keep the decline as small as possible. The funds will be used for the “start construction impulse” to finance projects that are ready to start construction.

He also asked local governments to find alternative sites for stalled projects. He plans to hold “acceleration talks” with cities and states on how to keep construction going as long as possible.

De Yongji stressed the urgency of realizing as many new homes as possible. The Dutch population has almost doubled in 2022 compared to 2021, largely due to a resurgence of immigration after the previous coronavirus restrictions were lifted. The existing housing shortage will become more acute as the population grows, and population growth is expected to slow down over the next few years.

On the positive side, De Yongji also announced that 90,000 homes were built or created last year. That’s 10,000 more units than he expected to be completed in 2022. These figures include flexible temporary housing and housing created by converting old commercial spaces.

https://nltimes.nl/2023/05/22/big-dip-housing-construction-expected-next-year-minister-says Homebuilding expected to fall sharply next year, minister says

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