Rotterdam's pact with builders for sustained housing production

Rotterdam's pact with builders for sustained housing production

ROTTERDAM, 9 June 2023 – In an unprecedented move, the city of Rotterdam and approximately 60 parties, including housing corporations, builders, and developers, have formed a united front to ensure housing construction continues.

Housing accord aims to sustain construction

The municipality of Rotterdam has inked a "Doorbouwakkoord" (literally, "Build-on Agreement") with these stakeholders to ensure that planned constructions do not stall. With more than 30 measures, they aim to guarantee that the 3,500 homes planned per annum are indeed built.

This initiative encompasses creating sufficient construction sites, increasing the number of affordable homes, and maintaining the affordability of construction. Alderman Chantal Zeegers (Climate, Building and Living), articulated, “Seeing such high demand for affordable housing and the imminent halt of its construction due to various reasons is disheartening. As a city administration, we do not want to stand by and watch. All Rotterdam citizens deserve a home, and it is time to act. That is why we are committing to this task with all these parties.”

Housing sector faces headwinds

Due to factors such as increased construction costs, limited building space, and higher interest rates, construction projects risk delays or cancellation. Simultaneously, the city's population growth has led to an increased demand for affordable housing. A comprehensive attack plan with over 30 measures aims to keep the construction production on track.

Build-on fund for affordable housing and sites

The Doorbouwakkoord introduces a build-on fund that will ensure the construction pace of affordable homes: rental homes with a maximum monthly rent of €1075 and homes for purchase with a maximum buying price of €355,000.

Additionally, to counteract stagnating construction due to escalated costs, a municipal contribution will be provided for mid-category housing. In an effort to keep construction costs down, the land value will be indexed by a maximum of 5% in 2022 and 2023.

Building for a climate-neutral future

Addressing climate concerns is of paramount importance. The construction sector faces the challenge of reducing CO2 emissions. By closely collaborating and sharing knowledge, the municipality, corporations, and market parties aim to be prepared for climate-neutral construction, mitigating any potential delay in construction plans due to new sustainability laws and regulations.

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