The Dutch love buying vacation homes. Our country now has nearly 130,000 of them – not counting caravans, beach and gazebos. All but five percent of them are on one of fifteen hundred (!) vacation parks, according to the Dutch Association of Estate Agents (NVM). This makes the Netherlands one of the most recreation park dense countries in the world.

Will it remain a dream?

More and more Dutch people are not only dreaming of their own vacation home, they are buying one. And preferably a luxury one, in an A-location. ”Since 2016, the market has been in a complete state of flux,” says Tom van den Brink of Second Home, organizer of expos on recreational homes.

Buying a vacation home is popular

The fact that vacation homes are more popular than ever is because owning a second home currently generates more money than a savings account. Banks hardly give any interest anymore and at the same time taking out a mortgage is cheap, also because of the low interest rates. Add all this together, not to mention all the media reports about the improving economy, and it is clear why the vacation home market is going like a bomb.

”The Dutch are also sensitive to what others are doing,” Tom van den Brink adds. ”If the neighbor has a new car, you can’t stay behind. It’s the same with vacation homes.” In other words: having your own house is in fashion now. And preferably one that makes an impression.

Luxury vacation homes

Michel van Opbergen, owner of Ruiterplaat Makelaardij in Kamperland, agrees. People want their vacation home to be at least as good as home, preferably even better.” That’s not in a sauna or three bathrooms, but in modern minimalist architecture, lots of glass (so views) and lots of comfort and convenience. For example, a house right on the harbor, or close to the beach.”

Currently, the De Groote Duynen project is being developed near Kamperland, Opbergen explains by way of illustration. In total, that consists of 107 homes, the final phase of which is now under construction. ,,These are cube-like bungalows with lots of glass, designed by the architectural firm Bedaux de Brouwer. We are one and a half years into the sale and we have already sold seventy homes. That is far above expectations, especially when you consider that these homes cost an average of 350,000 euros.”

Opbergen understands well that people see a vacation home as a savings vehicle. ”Not everyone is suited to the expo. And recreational real estate involves less risk than investing.”

Value of vacation home relatively stable

The value of a vacation home is relatively stable, adds Van den Brink of Second Home. Especially if a house is in a prime location and in a popular region. Traditionally, these are the North Sea coast in Zeeland and North Holland and the Veluwe. Especially in these areas, despite the large supply of vacation homes, finding tenants is not difficult, Van den Brink knows. Because current buyers do that more than they did about five or six years ago. ”Back then a cottage was mainly for personal use, now people see it mainly as an investment to make a return.”

Those considering buying a cottage for that reason would do well to have realistic expectations, he also warns. ,,In advertisements you sometimes read that you can achieve a 10 percent return on investment with a second home. The question is then: gross or net? Inquire about that carefully. If it is purely the yield from the rent, then it is gross. But you also incur expenses as a landlord, and don’t forget insurance. A healthy, net return is 4 percent. At our expos, we give seminars on this.” Those Second Home expos, held annually in Utrecht and Maastricht, also attract more visitors, by the way. ”In 2015 5500 people came, in 2016 there were 8000. In the process, the atmosphere of looking not buying has become a lot less. We hear from exhibitors that customers are concrete in their wishes, often making an appointment immediately if they are interested in a property. We did a survey among fair visitors and 60 percent say they want to buy a second home within a year.”

More diversity

The fair organizer feels that the buyer’s market is becoming more diverse. ,,The largest group still consists of people over 65, people whose children have left home. This group often consciously chooses to live on a smaller scale, moving into an apartment for example, and then ‘taking’ a vacation home with all the space they need to get out and about. We also see people spending the winter in Spain and living the rest of the year in a vacation home in the Netherlands. As long as it is not their permanent address, that is allowed.”

An increasing number of buyers are in their forties, says Van den Brink. ”These are highly educated people with families who want to be able to escape the Randstad, but also, so to speak, the plumber who wants to be able to supplement his pension later.”

The question, of course, is: aren’t the cottages gradually running out? Not for the time being, says Van den Brink. ”After all, there is a lot of construction going on.” Figures from the NVM also show that. Since 2013, a total of 4,500 new vacation homes have been completed. Of these, as many as 1,200 are in Zeeland. Nature organizations are not happy with this. According to them, valuable pieces of land, including flora and fauna, are being lost. According to broker Van Opbergen of Ruiterplaat, the end of new construction in Zeeland is therefore in sight. ,,But we don’t see the balance between sales and purchases disappearing yet. The market will regulate itself again, the interest rate will not always remain so low either.”

New construction and existing construction

In addition to new construction, space on existing parks is being used more intensively and, furthermore, there is a lot of renovation going on, Van den Brink said. For years it was very common to vacation in a damp cottage with an eighties look, that time is now past. ,,A large company like Centerparcs is now working hard to modernize the parks. The large parks are also expanding, for example by buying up outdated camping sites. On Ameland, Roompot has done that with the construction of the new park Boomhiemke. In two years, 140 lodges are/will be built there, larger vacation homes.” A unique feat, because on the Wadden Islands there are strict restrictions on new construction. For this reason, buyers usually have to dig deep into their pockets. The price of a vacation home has increased 30 percent compared to ten years ago, according to the NVM. Meanwhile, the average sales price here approaches 300,000 euros.

Those without tons to spend are not necessarily excluded from the vacation home market. The tiny houses and treehouse homes are on the rise. Small but nice and hip.

Source: RD