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Performance
Market rent and theoretical rent
EUR x 1,000 | 2024 | %-growth | 2023 | %-growth | 2022 |
Market rent | 172,336 | 5% | 164,206 | 7% | 153,510 |
Theoretical rent | 176,012 | 5% | 167,316 | 6% | 157,357 |
The total theoretical rent stood at €176 million at year-end 2024, an increase of €8 million compared with year-end 2023. This was mainly driven by the inflow of new-build homes into the portfolio, the annual rent increase in July, and rent increases due to investments in quality and sustainability in selected assets in the portfolio.
Average monthly rent per unit
EUR, year-end | 2024 | 2023 | 2022 | 2021 | 2020 |
Average monthly rent per unit | 1,255 | 1,199 | 1,143 | 1,104 | 1,033 |
The average monthly rent (residential) increased by 4.7% in 2024, due to the like-for-like growth of our standing portfolio and changes in the composition of the portfolio due to new inflow and outflow.
Development of total theoretical rent of residential units
2024 | 2023 | |
Average rent increase for current tenants | 2.80% | 2.50% |
Re-letting | 0.80% | 0.80% |
Other | 0.20% | 0.20% |
Total like-for-like rent increase | 3.80% | 3.50% |
The previous table shows the impact of the rent increase, reletting and portfolio inflow/outflow on the like-for-like
rental growth.
Average market value per unit
EUR x 1,000 | 2024 | 2023 | 2022 | 2021 | 2020 |
Average value per residential unit | 347 | 332 | 346 | 344 | 319 |
The average value per ARC's residential unit has increased by 4.5% to €347 thousand at year-end 2024. This increase was largely driven by positive revaluations. The vacant posession values declined with 1.4%, demonstrating a limited impact of the higher interest rates. Overall in the Netherlands, the average value per residential unit was €422 thousand at year-end 2024 (Source: Statistics Netherlands)
Revaluation in 2024
The graph below shows a breakdown of the 2024 revaluation throughout our portfolio.
Gross initial yield
%, year end | 2024 | 2023 | 2022 | 2021 | 2020 |
Gross initial yield | 4.4% | 4.2% | 4.1% | 3.9% | 4.1% |
The gross initial yield of the portfolio, defined as the theoretical rent at year-end divided by the value of the portfolio at year-end (excl. IFRS 16), increased to 4.4% in 2024 from 4.2% in 2023. An increased risk perception and rising interest rates had a direct impact on buy-to-let bids and transactions. This was reflected in market values and therefore created a widening gap between market values and vacant possession values.
Acquisitions and property sales
Despite the supply-demand imbalance, the improved investment and interest rate climate helped us offset these challenges, leading to four consecutive quarters of positive revaluation and a solid double-digit return. Our focus on creating homes that meet the evolving needs of our communities ensures long-term value while generating stable, lasting returns for our investors. We are encouraged by this turning point in the market and remain optimistic about what is ahead.
The following table provides an overview of the new-build additions to the investment portfolio in 2024.
New-build additions to the investment portfolio in 2024
PROJECT | LOCATION | UNITS | HOUSING TYPE | REGION |
Overhoeks - The Stack | Amsterdam | 58 | multi-family | Central Circle - North Wing: Amsterdam & Utrecht |
Overhoeks - The Bow | Amsterdam | 67 | multi-family | Central Circle - North Wing: Amsterdam & Utrecht |
Overhoeks - The Bow COG | Amsterdam | commercial | Central Circle - North Wing: Amsterdam & Utrecht | |
Holland Park | Diemen | 88 | multi-family | Central Circle - North Wing - Satellites |
Holland Park COG | Diemen | commercial | Central Circle - North Wing - Satellites | |
Olympiade | Amstelveen | 358 | multi-family | Central Circle - North Wing: Satellites |
Groot Hartje | Eindhoven | 201 | multi-family | Central Circle - East - Regional Cities |
Groot Hartje COG | Eindhoven | commercial | Central Circle - East - Regional Cities | |
772 |
During 2024 a total number of 772 homes were added to the investment portfolio from the pipeline while 700 units were sold through block sales. In comparison in 2023, 75 units were sold through block sales. More homes were sold to individual buyers compared to last year. During 2024 a total numer of 756 homes were sold as a result of both individual as well as block sales.