%D 2024
%X The discovery of gas fields in Groningen led to extraction activities supported by the Dutch government, triggering earthquakes that damaged the housing stock. In response, the government has implemented various aid measures to assist affected residents, one of them being the Koopinstrument. This is a buy up instrument designed to help homeowners who are “stuck” in their house. This form of governmental interference can help regain wealth quickly after big disasters. Nonetheless, there are concerns about potential overreach by the government. This research explores the history of governmental interference in the earthquake-affected area by analysing the transaction data of the Koopinstrument. The results of the research reveal that in 67.9% of the researched transactions, acquisition prices exceed sales prices. Key factors such as sales price, square meter living area, and time in the portfolio influence the differences between acquisition and sales prices of transactions, examined through price reduction rates. Lower-valued properties cause high volatility in these rates, larger homes tend to increase the rates, and difficult-to-sell properties also see increases in reduction rates. Higher rates indicate that sales prices decrease more relative to acquisition prices. Overall, the study suggests that the negative externalities of the earthquakes are reflected in discounts on properties, as evidenced by acquisition prices often exceeding sales prices, emphasizing the important role of the government in the region.
%L theses_frw4754
%T Governmental interference in negatively affected real estate markets: A comprehensive analysis of the “Koopinstrument” in the earthquake-affected area of Groningen
%A Luuk van Dijk