NETHERLANDS Trends and Developments Contributed by: Coco van Zuiden, Marijn Bodelier, Sabine Schoute and Simone Wijngaard, Greenberg Traurig, LLP
expanding transmission networks or upgrad - ing substations to accommodate higher loads. Additionally, integrating renewable energy sources like solar or wind, coupled with battery storage systems, could allow data centre facili - ties to reduce their reliance on congested grids while advancing carbon neutrality objectives. However, these potential solutions often come with significant upfront costs, time-consuming regulatory approval requirements, and logisti - cal challenges, which can make them difficult to implement at scale. Meanwhile, the market is working on optimisation strategies, such as improving energy efficiency within data centres and utilising AI-driven power optimisation, to alleviate pressures on the grid. As the demand for data processing continues to grow, overcoming grid congestion likely will remain a critical priority for ensuring the scal - ability, sustainability, and operational reliability of data centres in the future. Continuing Rise of Student Housing The demand for new (affordable) student accom - modations – particularly in the larger student cities in the Netherlands – is growing, and the requirements for these developments also are evolving. More and more students are looking for an independent, well-equipped room or studio with good amenities ( “living as a service” ) and preferably as sustainable as possible. This effec - tively means that the demand for new accom - modations and the transformation of vacant buildings becomes interesting for various play - ers in the (international) real estate marketplace. To ensure the affordability of lease accommoda - tions, and to ensure that rents match the quality of lease accommodations, the government has implemented the Affordable Rent Act of mid- 2024. This has affected the housing sector – and
thus the student housing sector – because there are (new) requirements in place that generally limit a landlord’s ability to freely determine the rent. The fact that more accommodations are now subject to maximum rent levels has had a major impact on new construction and transformation plans. To prevent new construction projects from being delayed or cancelled as a result, a tem - porary surcharge of 10% can in some cases be applied. Further Interest in Senior Living Senior living is emerging as a dynamic and promising category within the real estate market, driven by shifting demographics and increas - ing demand for specialised housing solutions for elderly people. With the aging population growing rapidly, it has become clear that many developers are focusing on creating vibrant, pur - pose-built communities that cater to the unique needs of older adults. These properties range from luxury, independent living and active adult communities to assisted living and memory care facilities, offering a spectrum of services tailored to varying levels of care and lifestyle preferences. The development of senior living (re)develop - ments via a forward-funding structure secures involvement in the process from an early stage to ensure it meets the requirements of an inves - tor, specifically if this is part of an (international) platform. Sustainability Sustainability is still a big topic in the Dutch real estate market as various aspects of real estate are touched by it. The design and construction of (nearly) energy-neutral new buildings became mandatory in 2021 in the Netherlands. In addi - tion, existing buildings face ever-increasing sus -
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