- February 1, 2015: Vol. 9, Number 2

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From zero to hero: Dutch residential has all the makings of a place to call home

by Brian Klinksiek and Zubaer Mahboob

The Dutch residential sector is one of the most promising segments of the European property market. It is characterised by a unique blend of cyclical turnaround potential, constructive structural reform and favourable supply/demand fundamentals. The sector is quickly transitioning from being a niche market — the preserve of domestic investors and housing associations — into one of the most discussed “outside-the-box” targets in European real estate. This is reflected in investment activity; transaction volume in the sector for the year ending Q3 2014 exceeded €1.6 billion, up 128 percent over the prior 12-month period. Nevertheless, the sector remains at an early stage of its recovery compared with other property sectors and has considerable room left to run.

In this article, we lay out the basic case for investment in Dutch residential. It rests on four key factors: (1) a cyclical rebound in Dutch macroeconomics, home prices and apartment rents; (2) fundamental hou

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