Housing conversions on the rise, but drop 8 percent in 2023
In 2023, 8,800 homes were created through the conversion of non-residential buildings, such as offices and retail spaces, marking an 8 percent decrease from the previous year. Conversions from office buildings dropped sharply, while conversions from retail spaces increased significantly. Data from Statistics Netherlands (CBS), commissioned by the Ministry of Housing and Spatial Planning (VRO), shows that 2,200 homes were created from former retail spaces, a 37 percent increase compared to 2022.
The average number of homes created per retail building also rose. In 2022, nearly three homes were delivered per retail property, while in 2023, that number exceeded four. In one-third of the conversions, almost the entire building was transformed into residential units, while in more than half of the projects, less than 50 percent of the space was converted.
North Holland led the country in housing conversions, with 1,960 homes created in 2023, up from 1,605 the previous year. The province accounted for 22 percent of the national total, followed by South Holland with 17 percent and Gelderland with 13 percent. More than half of North Holland's conversions took place in Amsterdam, with 1,155 homes added, representing 13 percent of the national total. Among the four largest cities, Rotterdam saw a slight increase in conversions, while both Utrecht and The Hague experienced significant declines of 33 percent and 29 percent, respectively.
While retail spaces contributed to a rise in conversions, former office buildings remained the largest source of new homes, with 2,500 units created in 2023. However, this number has been steadily declining from 3,100 homes in 2022 and 4,500 in 2021. Conversions from industrial properties remained stable, while those from public buildings, such as schools and healthcare facilities, saw a slight increase, though the total number of homes from these conversions dropped compared to last year.
Housing conversions accounted for 9 percent of the total additions to the housing stock in 2023, while new construction remained the dominant factor in housing growth, with 73,600 homes built.
