Banks are financing fewer and fewer properties

Posted on 24-02-2019 by F. Geurtsen

Dutch banks are financing less and less real estate. Unlike other countries in Europe, banks in the Netherlands are less readily putting capital into real estate. This is shown in KPMG's annual Property Lending Barometer and confirmed by multiple sources. Causes include regulatory changes around capital requirements and the fact that Dutch banks are already relatively deep into property finance.

The results emerged in the Property Lending Barometer, presented by international accounting and consulting firm KPMG at the end of last year. Compared to other European banks, Dutch banks are putting less and less capital into real estate. Frank Mulders of KPMG Real Estate Advisory explains why: "The reduced interest is due to regulatory changes regarding capital requirements. On top of that, banks in the Netherlands have a relatively large proportion of real estate financing on their balance sheets." At Rabobank, the money tap has virtually been turned off, De Telegraaf reported last month based on multiple sources.

However, demand for property finance is expected to continue to grow, increasing the total property finance portfolio in the Netherlands. This offers room for alternative financing options such as Crowdrealestate.

Sources: https://assets.kpmg/content/dam/kpmg/nl/pdf/2018/advisory/property-lending-barometer-2018.pdf & https://www.banken.nl/nieuws/21214/nederlandse-banken-financieren-steeds-minder-vastgoed-volgens-kpmg