Real estate investment shifts as Dutch returns lag behind Spain

The real estate landscape is seeing a shift in investor interest between the Netherlands and Spain. Institutional investors are structurally reducing their real estate allocations, with no significant recovery expected for the Dutch market before 2028. According to Sebastiano Ferrante of PGIM, Dutch residential properties currently offer returns that are too low for foreign capital, making them primarily logical for domestic Dutch investors.

In contrast, there is growing interest among Dutch investors in the Spanish property market. Spain is being highlighted for its stable market, attractive purchase prices, and high rental potential driven by a thriving tourism sector. New construction in Spain is gaining popularity due to modern sustainability standards and turnkey availability, though experts note that navigating Spanish law, local taxes, and permits requires specialized guidance.