Residential real estate traditionally finds itself relatively low on the risk return curve within the real estate asset class and more investors today acknowledge they hold too little property within their portfolio. Residential real estate can serve as a great diversifier with low volatility and steady returns.
We believe alpha returns with limited risk exposure can be generated in The Netherlands in the years to come if the right geographic spread and product diversification are in place. The general property market features also apply to the Dutch residential market, however there are some specific different characteristics compared to surrounding countries. Three elements are crucial from our perspective, continuous shortage (long term), underpriced assets (short to medium term) and significant ongoing changes to the Dutch housing market (medium to long term).
We believe the right products for various types of investors are in the marketplace now, however competitiveness is rising. Although we operate within a maturing investment market, we think the quality of fund and asset management activities can and should be improved. Also, the quality of residential rental products should be more tailored to today’s tenants and the way the rental markets are serviced is often outdated. Our commitment to improving fund and asset management activities, and the quality of products and services provided, continues to be at the core of our strategy.