Introduction theme
Editie: 30 - Shifts in the Real Estate Industry
Published on: 02 juni 2023
As we enter a period with a lot of new regulations, political instability and rising costs, there has been a noticeable shift in the real estate industry. In this bundle, the focus is laid on shifts that occurred in the past few years and are expected in the upcoming years. These are either related to new regulations, technological developments or the housing assignment which is set out for the Netherlands.
One of the most significant shifts in the real estate industry has been the rise in building costs. According to the European Union, construction costs increased by more than 16,5% between the first quarter of 2021 and the second quarter of 2022 (Eurostat, 2022). The spike in costs is most notable due to the influence of global political instability, particularly since the Russian invasion in Ukraine. These rising costs are due to a variety of factors, including increasing material costs, stricter building codes, a shortage of skilled labour and increased uncertainties. All in all, this should lead to a shift towards more sustainable and cost-efficient building materials and methods, such as modular construction and prefabrication. However, these aspects also have a huge impact on the housing assignment set by the Netherlands for itself, which is to be fulfilled by 2030. The housing assignment aims to create 961.000 new houses by 2030, with a focus on sustainability, affordability, and accessibility. According to a report by the Dutch Ministry of Internal Affairs, the housing assignment will require a shift towards more efficient land use, innovative building techniques, and sustainable energy solutions (Rijksoverheid, 2021).
Mid-rent regulations will also have a significant impact on the shift in the built environment. In the Netherlands, mid-rent regulations will be implemented to ensure that rental properties are affordable for middle-income households. These regulations should lead to a shift towards more affordable and sustainable housing, but the actual influence is debatable by professionals. What is the actual influence according to these professionals, and how will different parties react to the new regulation?
In conclusion, the real estate industry is experiencing a significant shift in the built environment, with a focus on building costs, energy costs, mid-rent regulations, and meeting the housing assignment set by the Netherlands. These shifts are driven by a variety of factors, including rising costs, environmental concerns, and the need for affordable and sustainable housing. By embracing these shifts and adopting new technologies and approaches, the real estate industry can create a more sustainable, affordable, and accessible built environment for future generations.
Theme-articles
In this bundle, multiple professionals will elaborate on certain shifts in the built environment. These are divided into three topics:
- Mid-rental regulation: the influence of the new regulation on the built environment sector.
- Time shifts: A comparison of the current market to the past and an elaboration on the housing assignment in the Netherlands.
- New trends: Ranging from technological developments to urban densification and transport.
Stefan Janssen (Head of Consultancy Capital Value) and Bas Muijsson (Senior Consultant Brink) will provide an in-depth analysis on the upcoming changes and impact of the mid-rental regulation, whereas Diane Nelissen (Junior Consultant Turner & Townsend) elaborates on a system that helps to assess rental properties.
Secondly, an evaluation of the housing market is performed, relating to the past and future. Frank Elferink (Partner Brickstone Retail) compares the market changes of the past ten years to each other, whereas Jeroen Beimer (Head of Research & Strategic Advisor Bouwinvest) predicts the housing market of the near future. Looking further ahead, Sara Rieuwerts (Advisor Republiq) assesses the feasibility of the housing assignment in the Netherlands. Furthermore, an interview is conducted with Ed Nozeman (Emeritus Professor Real Estate Development at the Rijksuniversiteit Groningen), in which he reviews his article that was published in the SERVICE magazine 15 years ago.
Lastly, some new trends are enlightened. Since technology is evolving faster than ever before, new developments in the Built Environment sector deserve some more attention. First, Joep Dirx (graduate student Urban Systems & Real Estate at Eindhoven University of Technology) presents a column where he interviews the AI chatbot ChatGPT, here Joep reflects on the use of a chatbot like this and what future effects could be. Furthermore, neuropsychological research is becoming a measurable and impactful topic in the built environment, of which Sophie Schuller (Neuropsychology Researcher Cushman & Wakefield) provides an in-depth analysis. Sander van Tuijl (Partner Industrial & Logistics Cushman & Wakefield) provides a view on the status of Supply Chain Management, and how to address additional issues. Suzan Evers (Urban Researcher at Eindhoven University of Technology) gives an insight in her current research on Virtual Reality, whereas Valeria Caiati (University Researcher at Eindhoven University of Technology) elaborates on Mobility as a Service (MaaS). Harm Tilman (Author and teacher in the field of architecture) and Christiaan Kwantes (Consultant Mobility and Space at Goudappel) will focus on urban densification, where Christiaan Kwantes looks at the mobility and social aspect, and Harm Tilman evaluates the need for densification.
These aforementioned thematic articles address the ever-changing built environment sector. It assesses shifts that are currently taking place, followed by how the sector can or should react towards these changes.
Joep Dirx
Editor
Graduate Urban Systems and Real Estate of
The Eindhoven University of Technology.
Yannick Pagie
Editor
Graduate Urban Systems and Real Estate of
The Eindhoven University of Technology.
Reference list
Eurostat (2022). Construction cost indices. Retrieved from https://tradingeconomics.com/european-union/construction-cost-idx-eurostat-data.html#:~:text=European%20Union%20%2D%20Construction%20cost%20index%20was%20EUR131.,EUROSTAT%20on%20April%20of%202023.
Rijksoverheid (2021). Nationale woonagenda: Meer betaalbare woningen, betere huurwoningen en wonen in een prettige leefomgeving. Retrieved from https://www.rijksoverheid.nl/onderwerpen/huurwoning-zoeken/maatregelen-tegen-woningnood/meer-betaalbare-huurwoningen-bouwen
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