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Current Legal Issues in Real Estate

A short interview of Rudolf van Binsbergen was posted in INTO business. Rudolf leads the professional group that deals with real estate development and construction....

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A short interview of Rudolf van Binsbergen was posted in INTO business. Rudolf leads the professional group that deals with real estate development and construction. Below, Rudolf outlines three themes that are coming up a lot right now and what Wille Donker can do in them.

1. What does the mid-rent freeze mean for my portfolio?

“In recent years, the housing shortage has led to a sharp increase in rents in the free sector. The government has announced a freeze on median rents to ensure that housing costs remain affordable. For investors, this is a final blow. An expansion of the real estate portfolio in the middle rent is now much less interesting, because the returns are put under pressure by this regulation. As lawyers, we advise investors on the consequences of this cabinet decision for current and future investment portfolios.”

2. Construction costs are rising much faster than provided. Who pays for that?

“Due to the war in Ukraine and the related commodity and energy crisis, construction prices are skyrocketing. This trend affects both contractors and clients. Contractors can no longer build at the prices they contracted for. Clients are sometimes forced to postpone or cancel the project. These kinds of dilemmas call for sound legal advice, where we not only dissect how the contract works, but also start the conversation about the importance of the relationship between contractor and client.”

3. The uncertainty surrounding construction projects is large. How do we safeguard our interests?

“With regard to nitrogen emissions, no regulation in the law seems certain. What the government comes up with is then undermined by the courts. As a result, and also because of increasingly stringent sustainability requirements, it remains to be seen whether you will get a building permit. Combine that uncertainty with stagnating demand, especially for apartments, and you understand that real estate developers are increasingly pulling the plug on a project. As lawyers, we supervise the settlement that then follows.”

Another tip, Rudolf?

“The unrest will continue for some time. So, above all, keep talking to each other and don’t immediately put relations on edge. In this industry you will meet again sooner or later…”

Still have questions? If so, please contact the Real Estate Practice Group.