VG Visie Daily: The government must rely on the expertise of entrepreneurs

Wim de Jong has always enjoyed working in the real estate world. However, the growing amount of regulations in Dutch residential real estate has led him to diversify his risks. He currently invests in real estate in Spain and has even turned his attention to entrepreneurship in the media. A conversation about regulatory pressure, opportunities across the border and his vision of the future of the real estate market.

What is your biggest frustration about the current real estate market in the Netherlands?
‘It feels like real estate entrepreneurs are diametrically opposed to the government. We are actually being bullied with rules. Entrepreneurs are the backbone of the economy, but people seem to forget that. There used to be mutual respect. For example, my father had a few apartments as retirement provision. He always made it a habit to have a nice cup of coffee with tenants. Unfortunately, that is no longer possible these days. As soon as a tenant has moved into his home, the municipality often immediately puts a letter under the door with the message that they are happy to help tenants object to a possible excessive rent. It is not specifically about my father, but about people like my father who simply work hard to make something of it.’

What do you think is the core of the problem?
‘With the supply. There are simply too few homes being built. If we were more decisive in the Netherlands, we could solve the housing problem within a year. Look at China: there, a skyscraper is built three months after the plans are drawn up. Here, we get stuck in nitrogen discussions and objection procedures. If we were to build homes on the Malieveld in The Hague – I’ll just give you an example – the problem would largely be solved.’

How exactly do you envision that?
‘The government should invite ten of the best real estate entrepreneurs from the Netherlands and give them the space to do what they are good at. I am sure that they will largely solve the housing problem within a year. But that requires a change in mentality in the government: less distrust of entrepreneurs and more willingness to take risks. It can be so much more efficient and faster if there are people at the helm who dare to make decisions.’

And then you thought: I’m going to start a business in Spain.
‘I didn’t want to worry about the situation in the Netherlands any longer. In Spain I started again like I did fifteen years ago here: by buying a few apartments, a business space and a hotel. The rules there are a breath of fresh air and there are still plenty of opportunities, for example in Valencia. The prices are lower, the returns are higher and you notice that entrepreneurs are welcomed with open arms there.’

What is the biggest difference between doing business in the Netherlands and Spain?
‘In Spain, the quality of life is higher, and you notice that the regulations are less suffocating. In addition, there are still markets open, such as furnished apartments for expats. In the Netherlands, that model has been chewed up by now. In Valencia, on the other hand, you can still really pioneer.’

Does this mean that you have turned your back on the Dutch real estate market?
‘Not entirely. I expect that sooner or later there will be more attention for entrepreneurs because this policy is not sustainable. In the meantime I have also invested in other real estate segments such as offices, childcare and hotels. Diversification is essential.’

What solutions do you see for the housing shortage in the Netherlands?
‘The government should build on a large scale and be less afraid of making mistakes. They should trust the expertise of entrepreneurs and perhaps even introduce an emergency law to limit objection procedures. There is so much potential in areas such as the Plaspoelpolder in Rijswijk. I had a project there for years, but due to bureaucracy and a lack of decisiveness, nothing came of it. If the government releases such areas for development, the problem will be solved quickly.’

Why do real estate developers have such a bad name?
‘There is a negative image of real estate entrepreneurs, while most of them simply stick their necks out to contribute to the economy. I understand that excesses need to be addressed, but the sector is now often unfairly portrayed in a bad light. It seems as if the government does not understand that we take the risk and create jobs and generate tax revenues with our investments.’

You are also active as a media entrepreneur these days. How did that come about?
‘When I became less active in Dutch real estate, I decided to build a media portfolio that also includes VG Visie. The model is similar to that of real estate: investing, achieving returns and creating value. I also made a podcast series, purely from personal ambition. It is called ‘With Borderless Ambition’ and it is about entrepreneurship.’