In July 2025, the consultation version of the Realization Incentive Regulation was published. The consultation period ends on September 5, 2025. The Realization Incentive is a specific grant intended to support municipalities across the Netherlands in delivering more affordable housing, with minimal administrative burden. To contribute to the construction of 100,000 homes per year, approximately €2.5 billion has been allocated for the next five years.
The Realization Incentive aims to stimulate the construction of affordable housing nationwide. Developing housing projects requires many public investments, such as relocating existing functions, public spaces, greenery, water, nature, and infrastructure. This leads to a gap between public revenues (e.g., land sales, contributions from market parties/cost recovery, or leasehold income) and public costs. This shortfall largely falls on municipalities, which often lack sufficient funds to fully cover it. The shortfall is typically higher for affordable housing due to lower revenues, even though demand for affordable housing is greatest, making it crucial that these homes are built.
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In the coalition agreement, it is stated that additional investments are required in vulnerable areas, such as in the National Program for Livability and Safety, for measures like public space improvement or upgrading facilities. For these areas, extra funds are available in addition to the Realization Incentive. This includes:
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Municipalities are rewarded for each affordable home whose construction begins in the period 2025–2029. The funds received can be reinvested in future housing projects, helping to scale up housing construction to 100,000 new homes per year.
Municipalities receive a fixed contribution of €7,000 excluding VAT for affordable homes whose construction start is registered. The contribution is paid in the year following registration. Homes realized by better utilizing existing buildings—through splitting, adding floors, or transformations—also qualify for the Realization Incentive.
Up to 2030, approximately €2.5 billion is available.
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Rent:
Social segment: max. €900.07 per month
Middle segment: €900.08 to €1,184.82 (liberalization threshold 186 points)
With the 10% new construction surcharge, this is €1,303.30 in 2025. The surcharge applies only if construction starts before January 1, 2028.
Purchase:
Sale price max. €405,000
Definition of construction start:
Start of foundation work
For transformation projects, construction start is the beginning of building works, usually after demolition
Preparing the land does not count as construction start
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Van Draeckeburgh has over 25 years of experience with subsidy applications. We can accurately estimate the expected benefit. Our advisors submit applications on time and ensure your project team stays on course to fully utilize the subsidy advantage while maximizing your benefits.