Fewer new houses expected in 2010

, Comments 0 comments

The number of new dwellings built in 2010 expected to drop below 2003 levels as the economic crisis takes its toll on the housing sector.

Rotterdam – About 58,500 new homes will be built in the Netherlands in 2010 – a 17 percent decrease from 2009, according to the latest projections by a market research firm.

The last time new housing development dropped to a low was in 2003, when 59,629 new homes were built.

The current economic situation is to blame, according to BouwKennis, a research company that publishes market information for the building and real estate sectors.

The company cited a two-fold problem for housing developers: they cannot sell new houses that have already been built, and they cannot find financing for new projects.

As fewer homes are built in 2010, a larger share of them will become rental housing instead of owner-occupied dwellings.

The percentage of new housing bound for the rental market is expected to rise to 39 percent, up five percentage points from 2009.

BouwKennis does not expect housing development to recover soon. In 2011, new housing developments are expected to decline further to 58,000 new homes.

Jennifer Evans / Expatica

0 Comments To This Article