Samenvatting

Purpose – Since the end of the financial crisis in 2013, the residential real estate market is booming in Amsterdam. Especially for singles and starters it is almost impossible to live in Amsterdam. This high demand and low supply in the market can be defined as an opportunity for investors to invest. Therefore, this research paper tries to create an investment strategy in order to create an as high as possible ROI in this specific market.
 
Method – This research is based on the outcomes of eight semi-structured interviews with institutional investors, private investors and a bank. All participants are experts in the residential market Amsterdam.
 
Conclusion – Private investors base their investment decisions more on gut feeling and using less analysis and calculation tools. Investment funds are investing in more complex investments, with a bigger amount of money. Therefore, professional approaches are adapt, to reduce investment decisions based on gut feelings. Thereby, they use the approach and indicator IRR. Besides, different scenarios are calculated. Entire Amsterdam is hot at the moment and the expectation is, that the upward trend will not be corrected. There could however be a slowdown when the mortgage interest will rise. The needs of singles and starters are changing, they fancy the share fun, split rent concept. Besides, studios of 24-28 square meter are a property type that can be connected to this group. Moreover, generation Y is more interested in the total quality of living.
 
Recommendations – For private investors it is recommended to increase professionalism in their approaches. Besides, investment funds, which can be characterised by a long term horizon, should make their investments more future proof, to reduce risk. For long term investments it is recommended to invest inside the Ring, especially the area Centrum. This location is defined as having nihil risk and a stable indirect ROI. For short time investments, the areas North ands New West are very promising. Besides, South East can be the next area that will show above average value increases.