Achmea Real Estate has been committed to the Dutch housing market for many years. On behalf of our institutional clients, we structurally invest in affordable, sustainable and future-proof housing. Already in 2018, we consciously opted for regulated middle rental, well before this topic became central to policy and legislation. By doing so, we underline that for us, mid-lease is not just a policy trend, but a strategic pillar with both financial and social importance. The demand for mid-rent homes is greater than ever. For an increasing number of households, these homes are the necessary link between the social sector and the owner-occupied market. Mid-rent offers starters and middle-income households access to affordable and good-quality housing, often in locations where work and amenities are close by. There are opportunities here for institutional investors: the combination of a stable return and a demonstrable social contribution makes this segment particularly attractive. It is precisely by investing in new construction projects within this middle segment that we can help alleviate the housing shortage and contribute to a more balanced housing market. The willingness to invest is strong, but at the same time we find that ongoing changes in rental regulation and tax legislation create uncertainty. Institutional investors invest with a long-term horizon and with the pension funds of millions of Dutch citizens. This requires stability in policy. Only with predictable and consistent conditions can this capital continue to work in the Netherlands, rather than being diverted to foreign markets. We also see movement outside the housing market. Investment dynamics are growing in the retail sector, especially in district and borough centres that play an important role in the liveability of neighbourhoods. Healthcare real estate is developing more slowly, but structural trends - an ageing population and the need for lifelong housing and accessible primary care - make this segment indispensable for the future. The common thread running through all these developments remains that a stable and attractive climate is key to continued investment. With clear frameworks and consistent policies, institutional investors can continue to play their role: contributing to an affordable housing supply, a robust retail structure and appropriate healthcare facilities. In this way, we build a liveable Netherlands together – now and in the future.

Peter Koppers, Director Investment Management