Stagnation in Converting Vacant Offices and Shops into Homes in the Netherlands

Stagnation in Converting Vacant Offices and Shops into Homes in the Netherlands

The Netherlands has long embraced the transformation of under-used buildings—former offices, shops, schools, and even churches—into much-needed residential units. Conversions can be faster, greener, and more cost-effective than new construction, helping to alleviate both housing shortages and environmental pressures. Yet recent figures from Statistics Netherlands (CBS) reveal that this strategy is losing momentum, with just 8,675 homes completed through conversion in 2025—far below the government’s target of 15,000 per year.

In this article, we explore the causes of this slowdown, its implications for national housing and sustainability goals, and the steps policymakers, municipalities, and developers can take to reignite adaptive reuse across the country.

Why Conversions Matter

Adaptive reuse of existing buildings offers multiple advantages:

• Sustainability: Repurposing existing structures dramatically reduces nitrogen deposition compared with new construction, a key consideration under the Netherlands’ stringent environmental regulations.
• Speed and Cost: Conversions often bypass lengthy land-zoning procedures and foundation work, making them quicker and less expensive than ground-up development.
• Urban Regeneration: Breathing new life into city centers and decommissioned commercial zones supports local businesses, improves safety, and preserves cultural heritage.

Housing Minister Mona Keijzer has endorsed her predecessor’s goal of 15,000 conversion homes per year, arguing that every unit—whether newly built or transformed—helps reach the broader objective of 100,000 new homes annually. Yet the gap between ambition and reality is widening.

The Latest Figures: A Reality Check

According to CBS, 8,675 homes were completed in converted buildings in 2025, down slightly from 8,755 the previous year and a steep decline from the 12,000 achieved in 2019. The drop is almost entirely attributable to fewer office-to-home projects; conversions of shops, schools, and churches have remained relatively stable.

Meanwhile, over 3 million square meters of office space lie vacant nationwide—a massive reservoir of potential housing waiting to be tapped. Unless this space is leveraged effectively, the housing supply will continue to tighten, and nitrogen emissions from new construction will remain problematic.

Bottlenecks Slowing Progress

Several factors help explain why the low-hanging fruit of conversion projects has been exhausted and progress has stalled:

1. Limited Stock of Easily Convertible Buildings
   Early waves of transformation targeted office blocks abandoned after the credit crisis. Those projects yielded quick wins, but today’s remaining stock often has structural complications, heritage restrictions, or fragmented ownership.

2. Fragmented Ownership and Coordination Challenges
   Many larger office parks are held by multiple investors waiting for an anchor developer or wider area redevelopment. Without cohesive planning at the municipal level, individual owners hesitate to invest in expensive upgrades.

3. Technical and Regulatory Hurdles
   Adaptive reuse demands specialized knowledge—reinforcing load-bearing structures, installing energy-efficient insulation, and ensuring compliance with fire safety and accessibility standards. Municipalities vary in how they apply building codes, which can lead to unpredictable permit timelines.

4. Financial Viability
   Rising construction costs, supply-chain disruptions, and the need for extensive renovations can make some conversions financially marginal compared with greenfield development in less regulated regions.

Expert Perspectives

Francesco Veenstra, the Dutch government architect and chief construction advisor, has called the stagnation “unacceptable.” He warns that if the country fails to maximise conversions, it will hamper sustainability goals and further strain the housing market. Veenstra advocates not only meeting but exceeding the 15,000-units-per-year target—with stronger collaboration between municipalities, project developers, and financial institutions.

Professor Hilde Remøy of TU Delft highlights that the first decade of transformation projects tackled the most straightforward buildings. Unlocking the next wave of conversions will require coordinated area development. Municipalities can play a crucial role by establishing redevelopment zones, offering technical support, and facilitating partnerships among building owners.

Policy and Municipal Actions to Reignite Conversions

To overcome the current standstill, stakeholders can consider the following strategies:

– Designated Conversion Zones: Municipalities could map high-potential areas with concentrated vacancies and streamline zoning and permitting processes within those zones.
– Technical Assistance Hubs: Local authorities might establish advisory centres that connect developers with structural engineers, sustainability consultants, and fire-safety experts.
– Financial Incentives: Grant schemes or low-interest loans can offset the extra costs of specialized renovations, particularly in heritage or ecologically sensitive sites.
– Public-Private Partnerships: Collaborations between the gemeente (municipality) and private investors can spread risk and ensure area-wide regeneration plans are realised.

These initiatives, coupled with a flexible approach to the overall housing target, can keep conversions a vital pillar in the Netherlands’ housing strategy.

The Road Ahead

While the national housing target remains focused on 100,000 homes per year in total, the strategic importance of conversions has never been greater. As new construction faces delays from environmental regulations—particularly nitrogen deposition limits—adaptive reuse presents a concrete solution to add housing stock without adding nitrogen emissions.

Achieving a step-change in conversions will hinge on coordinated leadership. Housing Minister Keijzer’s commitment to conversions is clear, but turning ambition into delivery requires active engagement from municipalities, streamlined regulations, and targeted incentives.

By tackling the technical, financial, and coordination challenges head-on, the Netherlands can revitalize vacant buildings, strengthen local communities, and take a significant step toward a more sustainable and inclusive housing market.

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