In the first half of 2023, Ballast Nedam shows a positive result in line with previous expectations. The company adapts to challenging market conditions and focuses on maintaining a healthy business with predictable outcomes. Ballast Nedam Development urges the caretaker cabinet and Second Chamber to continue paying undiminished attention to the housing market and to process existing policies and legislative proposals. Opportunities for growth for Ballast Nedam Development lie in areas such as health in the living environment, the use of biobased building materials, and accelerating the housing construction task.
Key Figures First Half-Year 2023
Revenue: €514.7 million (2022: €605.9 million) EBITDA: €26.4 million (2022: €23.9 million) Order book: €1.4 billion (2022: €1.7 billion)
Read the full half-year report.
Unwavering Political Attention Required for the Housing Market
The housing market has our attention. Despite the significant need for (new build) homes in the Netherlands, we are witnessing a decrease in home sales. This is largely attributed to higher (mortgage) interest rates, declining consumer confidence, and increased construction costs. As a result, fewer projects are being put up for sale in some regions. Lengthy processing times, the nitrogen dossier, as well as numerous objections from the surrounding area, result in prolonged project durations. Additionally, regulation of mid-rental housing is inhibiting housing production. Uncertainty surrounding the implementation of this regulation is causing investors to adopt a wait-and-see approach. Swift handling of the Affordable Rent Act is essential for the functioning of the investor market.
The recently introduced stimulus policy of the Startbouw Impuls by outgoing Minister De Jonge is a welcome initial push to get projects started. Furthermore, for the long term, more large-scale residential development locations need to be designated to continue meeting housing demand. Accelerating site development and shortening procedures are essential in this regard. For the entire construction and real estate market within the Dutch economy (which accounts for approximately 12.9% of GDP), a comprehensive stimulus package from the government is necessary to ensure planned projects that are at risk of stalling can still be built.
Growth Opportunities for a Sustainable Future
Area development is a specialty that will become increasingly important in the coming years. Area development is the connecting link in transitions concerning health in the living environment, biobased material use, energy, and mobility.
In Cartesius Utrecht, the sales launch took place, and together with the Ministry of BZK and the Alderman of Utrecht Municipality, the construction of 770 homes commenced. Simultaneously, it was announced that Cartesius Utrecht will serve as a showcase project for the WHO (World Health Organization). A large number of research institutions, governments, and companies will jointly measure the interventions of the area developer and the impact on residents' health in this area development, inspired by the scientific theory of the Blue Zones.
Amsterdam Municipality announced that the very first phase of the new Strandeiland will be developed by Ballast Nedam Development. The 215 homes in this phase are self-sufficient, nature-inclusive, and circular and consist of mid-priced rental and purchase, as well as private sector. There will also be a leading (mobility) neighborhood hub incorporating shared facilities programmed for and by the neighborhood through participation, which will remain adaptable in the future.
Over the past half year, Ballast Nedam Development, together with LTO Bedrijven, Merosch, SWP, and Rabobank, launched the WeGrow platform. WeGrow brings together agro-building and biobased construction through knowledge sharing and connection between the two target groups. Collaboration between builders and farmers not only leads to more sustainable construction projects and agriculture but also to new innovations and business models.
