Rise in sales of new build homes gives construction company Heijmans hope for the future

Construction group Heijmans is seeing an increase in sales of new-build homes. "The rise in the number of home sales has continued. The demand for ground-level homes remains especially high, which gives confidence for the rest of this year," said CEO Ton Hillien of the listed company. Ground-level homes are homes with a living floor on street level and usually have a terrace or garden.

It is a boost for Heijmans, who were doubting last summer whether the low point in the housing market was still to come or had already happened. The housing market had an upward trajectory in the previous months of last year, which made the construction company from Rosmalen optimistic when presenting their yearly figures in March.

Heijmans sold 952 homes from January to the end of April, comfortably more than in the same period a year before. The figures strengthen Heijmans's previously set expectations for this year. The group is aiming for a turnover of 2.5 billion euros and a profit margin of at least 6.5 percent for the year.

BAM, the other large publicly traded company in construction, also saw its home sales rise in the first quarter of the year. BAM noted that the homes were mainly bought by private individuals. Residential investors still seemed cautious.

Despite the hopeful numbers, the concerns regarding the housing market are not gone yet. Heijmans is still worried about the lack of new planning capacity and the delays in licensing. If the government does not step in, this will remain a source of delay for home sales for the coming years.

Heijmans is also pressing for "a wider view of new build," where multiple types of houses are being built. "The focus now is too aimed at expanding the number of affordable housing," said Hillen.

"The housing market actually benefits from new homes in the middle and higher segments in favor of good circulation, so that more existing homes become available for first-time buyers."