.jpg "2019 Spotlight Residential")
Development of new property starting to stall as the housing market booms
KEY FINDINGS
- The current supply pipeline of new development projects cannot meet the strong demand and scarcity of (affordable) homes.
- Despite sufficient investor capital, new residential build projects have become increasingly unprofitable due to inflated construction costs and land prices, combined with further cost-increasing government regulations.
- The ‘Savills attractivity scan’ illustrates that both Brabant and the Randstad have the highest housing shortage but are also the least feasible for new construction projects. However, due to existing market demand, these areas are particularly attractive for residential new build investors; a huge paradox.