Soaring real estate prices and valuations despite the economic downturn brought by the pandemic have focussed the attention of Dutch policymakers on potential macro-financial and socio-economic implications. In this context, our paper reviews the salient features of Dutch commercial and residential real estate markets with an eye to identify pertinent risks and challenges. While we find that the Dutch authorities have made considerable strides to strengthen real estate-related policies in recent years, some, and partly long-standing, issues remain, requiring additional efforts to bolster financial stability, address housing supply shortages and manage secular changes affecting property markets.
conclusions and offers policy recommendations.
B. CREmarketcharacteristics and participants
Exposure to CRE risk can take multiple forms, as property, investor and investment types are characterized by considerable variety . CRE can encompass buildings as distinct as hospitals, hotels, housing for the elderly, industrial premises, offices, shopping malls, single store retail or warehouses. Likewise, a sizeable number of financial market participants are maintaining portfolios subject to CRE risk, comprising banks, institutional investors (pension funds, insurance