Housing shortage in Amsterdam shall make the city attractive for investors. Moreover, recent survey made by real estate advisors CBRE showed that Amsterdam is among three most popular for foreign investors city in Europe, Bloomberg informs.

However, new government’s plan on tough regulation of housing sector and capping rent scares away potential investors.

The government developed a plan on 7500 new houses a year, however, third of them will be marked as social housing for households with low income and will not be available for private investors.

At the moment share of social housing in the city is more than 50%, and the government makes sure that it does not fall below 45% in some regions. At the same time, it is seeking ways to limit rent costs for some new apartments. Such limitations results in reduction of real estate investments profitability.

Amsterdam’s property prices have been growing recently among economic growth, low interest rates and housing shortage. It made government to take steps for providing households with cheap houses.

However, experts think that in such situation local government shall stimulate new supply, not regulate it by setting requirements to property built on private, not public land.