3 min read

Navigating the Dutch Real Estate Challenges: Why YOUNG Expands to Valencia?

Written by

Wim de Jong

Updated

oktober 22nd, 2024

3 min read

The Dutch real estate market is currently facing a series of obstacles that make it difficult for both new buyers and seasoned investors. Over the last decade, house prices in the Netherlands have doubled, with increases of up to 130% in the most desirable urban neighborhoods. This dramatic rise is largely due to a mismatch between growing incomes and a persistent shortage of available housing, especially in the major cities like Amsterdam, Rotterdam, and The Hague. As a result, finding affordable housing options has become a daunting task. For investors, the situation is equally challenging. The high cost of entry, combined with limited space for future growth, has created an environment where profit margins are shrinking, and opportunities for long-term investment returns are increasingly difficult to find. Rising regulatory constraints, such as tighter rent controls and sustainability requirements, further complicate the picture for developers and investors alike.

Spain: A Promising Alternative

In the midst of these challenges, YOUNG looks beyond the Dutch borders and sees a great opportunity in Spain, specifically in Valencia. Recently crowned Europe’s best city in the Readers’ Choice Awards 2024, Valencia is fast gaining recognition for its unique combination of culture, innovation and real estate potential. The city has a score of 92.78, highlighting its emergence as a highly desirable location. With a booming property market, lower prices than Dutch cities and an exceptional quality of life, it offers a strong differentiation from the saturated and expensive Dutch market. These factors make Valencia an ideal target for real estate expansion.

The Allure of a Thriving Market

What sets Valencia apart from other European cities is not just its affordability but its strategic growth. The city has undergone significant transformation, including converting a former riverbed into a sprawling urban park and introducing modern developments like sleek rooftop bars and beachside resorts. This steady evolution has captured the attention of both locals and international investors.

Unlike the saturated Dutch market, Valencia offers an attractive mix of affordability, growth potential, and lifestyle appeal. Property prices in Valencia remain significantly lower than in the Netherlands, allowing investors to acquire high-quality properties at competitive rates. As demand for both residential and commercial properties grows, Valencia presents a rare opportunity for long-term returns in a rapidly developing city.

 

It’s incredibly exciting to be investing in Valencia right now. The market here has so much untapped potential, unlike more saturated cities like Madrid and Barcelona. Valencia is growing fast, with a vibrant community, and the demand for quality developments keeps increasing. It really feels like the perfect moment to jump in and seize the exciting opportunities ahead.

SAMANTHA PARDO – Head of Real Estate & Portfolio Acquisitions

Why Young is Focusing on Valencia?

Valencia’s new status as Europe’s best city reinforces what YOUNG has long recognized: the city is a thriving hub of opportunity. With affordable property prices, a booming real estate market, and an unmatched quality of life, it’s the perfect place to build for the future. For YOUNG, this is more than just a smart investment—it’s about capitalizing on a city that aligns with our long-term goals. Valencia provides the perfect combination of affordable entry points, cultural richness, and untapped real estate opportunities. As the city continues to attract both international buyers and investors, the demand for quality developments will only increase, offering a wealth of opportunities for those ready to seize them.

 

Are you ready to join us in capitalizing on this unique opportunity? 

Contact us to start your journey. 

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