Acquisitions and property sales

The Dutch residential investment market showed signs of recovery, as the investment volume in the residential real estate market increased by 59% compared with 2023. This growth was primarily driven by an increase in portfolio transactions and renewed interest from international investors (Sources: Capital Value, Cushman & Wakefield). Despite this positive trend, challenges persist. The demand for affordable rental housing continues to outstrip supply, particularly for middle-income households. The market is still adapting to the new regulatory environment, including the implementation of the Affordable Rent Act in July 2024.

Vesteda recognises the persistently strong demand for affordable housing and remains committed to delivering good quality homes for middle-income households. While transaction volumes are still below pre-2022 levels, we see opportunities emerging. The stabilisation of interest rates and a slight improvement in investor sentiment have created a more favourable environment for long-term investors. Looking ahead, Vesteda remains cautious with regard to new acquisitions in the short-term, while maintaining and strengthening its long-term business partnerships, positioning itself to capitalise on market opportunities as they arise. We continue to focus on sustainable, high-quality residential assets that align with our strategy of providing affordable housing while delivering value to our stakeholders.

In 2024, Vesteda sold five complexes totaling 257 units that did not align with our long-term strategic goals. Additionally, we sold 444 individual units, bringing the total units sold for the year to 701.

The following table provides an overview of the new-build additions to the investment portfolio in 2024.

New-build additions to the investment portfolio in 2024

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 Q2 2024. Vesteda acquired an additional 18 units in the Zuiderhof project in Rotterdam. All units are attainable for middle income households.

The total committed pipeline stood at 637 units at year-end 2024, with an estimated market value at completion of €233 million as per year-end 2024. 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 2024