Find out all you need to know about the housing market in the Netherlands, if it’s a good idea to buy a Dutch house and how hard (or easy?!) it is to get a mortgage in the Netherlands in 2021.
So you moved to the Netherlands; welcome! Or thinking about moving to the Netherlands? Do it! The economy is still in good shape, summer is coming and corona is on the way out (we hope.) But then there’s the issue of whether to rent or buy a house in the Netherlands, and we can tell you that renting a place here is very hard sometimes.
You might be thinking about buying a house in the Netherlands as an expat, throwing yourself into the vortex that is getting a mortgage in the Netherlands as a foreigner. Those are all life choices that you’ve ultimately got to make for yourself. But what we can help you with is explaining the housing market in the Netherlands in 2021!
You don’t want to fiddle around when it comes to life-changing decisions like buying a house in the Netherlands or getting a Dutch mortgage. Neither did we, so we teamed up with the good people from Expat Mortgages. Expat Mortgages has mortgage advisors throughout the whole country which really comes in handy if you’re writing about the housing market in the Netherlands. (So a big shout out to Stephania Ammerlaan from Expat Mortgages who helped us out this time, she really knows everything about the housing market and is the go-to person for the Leiden region)
The housing market in the Netherlands in 2021
The housing market in the Netherlands is hot! Not gonna lie about it, buying a house and the subsequent process of getting a mortgage in the Netherlands, is something that comes with some pressure — especially in the Randstad.
But not to worry, with some prepping and studying you can get some basic insight in what’s going on right now and for starters, you can check out this article on why buying a house in the Netherlands is still the way to go for a lot of people.
In 2021, house prices have risen (as always) but at different rates depending on where you’re looking. So let’s discuss the different regions.
Housing prices in the Randstad in 2021
House prices will likely continue to rise in the Randstad, but perhaps less than before, as people move out in search of cheaper properties. In 2021, housing prices rose by 7,8%. Coronavirus was a factor in the housing market, but not a dampening one as was expected at the beginning of the crisis.
In fact, while housing prices in general are on the rise, some of the biggest increases in prices in 2021 were not just seen in the Randstad, but actually in regions outside of it.
The housing market in Amsterdam in 2021! Is it still a good idea to buy a house in Amsterdam?
But before we move to the countryside, let’s linger on Amsterdam. After all, it’s where everybody wants to buy a house but nobody seems to be able to anymore. Overbidding on the asking prices, fully packed visits whenever there’s an open house and units of 15m2 are being sold for the same price that gets you a decent house elsewhere in the Netherlands. Any good news for the housing market in Amsterdam? Well, actually, there is!
Housing prices in Amsterdam 2021
Surprisingly, Amsterdam saw one of the lowest nationwide increases in housing prices this year. In 2021, prices saw an average increase of 4.5% — still an increase but it’s less concerning than in other regions!
This all might signal stabilization of the housing market in Amsterdam, but the market can still be characterized as “overheated” as there are simply not enough houses being offered for sale. Also, it seems to be that more houses are being sold which were previously being used to rent out. Turns out that even you fat cat expats can’t pay those €2500 rental prices.
The coronacrisis has also stopped the large influx of tourists to Airbnb’s and some internationals have left for their home countries. This has all resulted in the pressure being a bit less on the housing market in Amsterdam in 2021.
TIP BOX WITH EVENTS FROM EM
Of course, the housing market in the Netherlands isn’t just Amsterdam. Also, turns out that more and more people are discovering other nice Dutch cities which aren’t that far away from Amsterdam. Such as our hometown of Leiden. So why would one buy a house in Leiden instead of Amsterdam?
The Housing market in Leiden — Should you buy a house in Leiden?
Ah, the beautiful Leiden! It has the canals, the culture and everything else one could want to seriously contemplate moving to Leiden. We’ve already extensively praised Leiden on DutchReview and rightly so — but let’s talk housing.
The Housing Market in Leiden
Buying a house in Leiden might be cheaper than Amsterdam, it’s not all perfect. The housing market in Leiden is also a bit overstretched and prices have been on the rise for years. But if you’ve got a realtor and mortgage adviser who knows what they’re doing, you can still buy a beautiful home in Leiden with a garden for the same price that gets you a small Amsterdam apartment.
If you’re interested in buying a house in Leiden, but don’t know where to start? The the top-of-the-line mortgage advisors from Expat Mortgages will happily tell you all about the ins-and-outs of the housing market in Leiden.
A move from the cities to the countryside
It seems that coronavirus has led to one significant side effect in the Dutch housing market: people are packing their belongings and moving to the countryside.
It makes sense. Crowded cities have become hotspots for coronavirus, lockdowns make city life even more unappealing, and since we’re all working from home it makes more sense to have a bigger house (and if you’re really lucky, a garden!) These types of homes are generally more affordable in the countryside (or whatever passes for that in the Netherlands).
Wherever you may be fortunate enough to buy, once you get an offer on a house accepted, speed is also key when it comes to getting that all-important Dutch mortgage. So what’s new when it comes to getting a mortgage in the Netherlands in 2021?
Getting a mortgage in the Netherlands as an expat in 2021
A couple of things stand out for 2021 and surely you don’t want me to explain the whole process of landing a mortgage in the Netherlands to you. Let’s start on a positive note, while buying a house might be hard sometimes, getting a mortgage in the Netherlands as an expat actually is pretty doable.
The interest rates are historically low and more and more banks in the Netherlands are willing to loan money to expats and it is a relatively fast and easy procedure. Nowadays you can borrow 100% of the value of the house and you will need to provide around 5% for all the other costs yourself related to the purchase.
Your monthly instalments will depend on the interest rate, the type of mortgage you have and the period you took the loan out for. However, if you choose to make a down payment and take less than 100% then you can significantly reduce your monthly costs. These are all things you can discuss with your mortgage advisor and he or she can help you choose the best option for you.
But not all you internationals have a straightforward case when it comes to getting a mortgage in the Netherlands and for some, the situation is more complicated. For example income from abroad, one partner is a freelancer, living between two countries, etc. A lot of time there’s still something possible, but it’s best to have a chat with a mortgage advisor about all these things.
What kind of house should one buy in the Netherlands?
An always important factor for deciding on buying a house is what kind of house you’re going to buy in the Netherlands. First and foremost, it’s a matter of taste. But besides that, we can at least talk about some other factors. Here are three things to know when it comes to the type of house and the housing market in the Netherlands:
The price of newly built homes is going up (fast!)
New Dutch homes are becoming more expensive at a furious pace. In the third quarter of last year, the price of new-build homes that were sold was no less than 10% higher than a year earlier, according to the Central Bureau for Statistics. Existing homes were on average ‘only’ 8.1% more expensive.
A part of this price increase is due to the ‘energy transition’ which is also a good thing since those houses will have energy bills that will cost less on a monthly basis.
Those nice 1930’s houses in the Netherlands
So you might have been driving through a more classical Dutch neighborhood and decided that you wanted to buy one of these houses:
Nicely chosen then, you’ve got some good taste. However, you’re not alone as these 1930’s built houses are always popular and therefore quite expensive. Again, there’s an upside to this as well, as the quality of these classic Dutch houses is quite good (the energy bill can be quite hefty).
That old canal house or a typical Dutch houseboat?
Perhaps living in a canal house from the Golden age era or in of those cute houseboats is your #lifegoal. Okay, we can certainly relate, but be aware that these nice looking housing opportunities can also come with loads of repair and maintenance work. Which isn’t only a hassle, especially if you’re an international, but also significantly costs more in 2021 than it did in the years before. Plumbers and carpenters all have plenty to do and have upped their prices. Just so you know 😉
Pro-tip: WOZ value and how this may help you get a better interest rate
The WOZ-value is another term for property valuations. The value of a property is determined by a municipality; it’s called a WOZ declaration. Don’t worry, the ‘gemeente’ isn’t coming to your home, all houses in the neighborhood get roughly the same calculation.
This value is then used by the municipality to calculate all kind taxes and thus, the higher the WOZ value, the higher the taxes you pay. And WOZ values are rising, so you’re wondering by now why the hell I’m bringing this up?
Well, if you’re a mortgage owner in the Netherlands already, and your WOZ value is on the up-n-up then the risk for your mortgage-lender is going down. And that means, get ready for the good part, that your interest rate is going down. (Which means fewer costs per month!)
The future of the Dutch housing market
So the prices of houses in the Netherlands are rising, but how long will that last? And will these prices then fall? Well, experts are saying that it’s actually likely that prices will at least be stable and very likely continue to go up in the coming years.
The main reason for this is just that buildings don’t go up as fast as the demand for houses. Building houses is a complex process in the Netherlands and getting permits and all that takes a long time. Thus the prices will continue to be stable and rise a bit and thus, combined with the interest rate development and general economic predictions in the Netherlands – it’s still a good decision to buy a house now and not wait too long to buy a house in the Netherlands.
But to get a proper forecast and analyses of the area you might be interested in when it comes to buying a house in the Netherlands, you might want to talk to a mortgage advisor who knows the Netherlands and your expat needs…
Get on board with Expat Mortgages to help you get that Dutch mortgage
As an expat you will need some help to secure a mortgage here and this process is already tough for a Dutchie and it’s a life-defining moment. So get help, and who better to ask than Expat Mortgages who already have 13 years of experience in the mortgages advisory business and have helped thousands of expats from different nationalities. As you can see they know their stuff:
This is a big club with advisors throughout the country! So whether you’re interested in buying a house in Leiden or Amsterdam; Expat Mortgages has the right person to advise you on all the ins-and-outs of it.
Want to get in touch for an offline appointment? Well, they can meet you for a no-strings-attached meeting in which you can ask everything about the mortgage possibilities. Or just drop by at one of their events, also conveniently held throughout the country!
Are you thinking of buying a house in the Netherlands? What are your questions and thought about the housing market in the Netherlands in 2021? Let us know in the comments!
Editor’s Note: This article was originally published on 27 February 2019, but was thoroughly updated for your reading pleasure on 30 January 2020.
Feature image: Abuzer van Leeuwen/Supplied.