Acquisitions and property sales

The macroeconomic conditions for the Dutch housing market did not improve significantly in 2023 and the developments described in the Market developments chapter resulted in an imbalance in the investment market. Higher perceived risks and uncertainties had an impact on the pricing of build-to-let assets and also on block sales. At the same time, the demand for affordable rental housing remains high and is growing, especially from middle-income households seeking affordable rental homes. Vesteda, therefore finds it important to remain active in the market, albeit at a lower volume. Vesteda wants to maintain ongoing long-term business partnerships, positioning itself to capitalise on potential future market opportunities when the market finds its new balance.

The following table provides an overview of the new-build additions to the investment portfolio in 2023.

New-build additions to the investment portfolio in 2023

In 2023, Vesteda sold 149 individual units. Vesteda did not execute any non-strategic complex sales in 2023.

Our acquisition strategy is focused on homes for middle income households. Given the current challenging macroeconomic developments, we limited our acquisitions to one new-build project that was added to our pipeline in Q4 2023. Vesteda acquired the Zuiderhof project in Rotterdam, which consists of 160 units. The rents range between €808 and €1,075 per month (price level 2023). 

The total committed pipeline stood at 1,713 units at year-end 2023, with an estimated market value at completion of €583 million as per year-end 2023. All projects are in line with our portfolio strategy. The majority are located in the urban expansion sites of larger cities in the Netherlands, where Vesteda can benefit from the financially promising and ongoing development and improvement of the areas.

Committed acquisition pipeline at year-end 2023