As we head into a new year, the Dutch housing market is continuing its well-known tradition of getting pricier — and 2025 is no exception.
According to De Nederlandsche Bank (Bank of the Netherlands) predictions, Dutch house prices are expected to rise by a whopping 7.5% next year, making the average house even costlier. 😬
Prices are through the roof
If you’re planning to buy a house in 2025, prepare yourself to come up with more than half a million euros.
Yes, you read that right: The average price of a Dutch house in 2025 is predicted to be €520.000.
As NU.nl writes, this unsurprising development comes down to multiple factors, including higher wages, house shortages and falling mortgage rates.
READ MORE | 7 questions about buying a house in the Netherlands, answered by a mortgage expert
Rising prices will likely also result in more overbidding, so get ready for a fight if you want to secure a home within the next year. 🥊
Solving the crisis… unsuccessfully
While more building permits have been issued in recent times, there are still not nearly enough houses being built to reach the government goal of 100.000 new homes per year.
That considered, new homes alone are not enough to solve the Dutch housing crisis, according to the Bank of the Netherlands.
READ MORE | Why is there a housing shortage in the Netherlands? The Dutch housing crisis explained
Instead, the government should also think about reducing tax benefits for homebuyers to lower the demand.
Furthermore, a well-functioning renting market would be necessary to reduce the pressure on home buying.
But, as anyone who has lived in the Netherlands will tell you, ‘well-functioning’ and ‘renting market’ are not four words you’re likely to encounter in the same sentence.
The very thin silver lining
The only positive? Buying your first Dutch home probably won’t become more difficult in the next few years. This is due to the fact that borrowing capacity increases at a similar rate as house prices.
READ MORE | 8 steps to getting a mortgage and buying a house in the Netherlands for expats
Just because the situation isn’t worsening, doesn’t mean it isn’t already difficult, though.
To afford a mortgage for a €520.000 house, the annual gross income of a household needs to be €106.000.
The Central Bank estimates that only about 36% of Dutch households meet that criterion.
Do you have any experience buying a home in the Netherlands? Share your thoughts in the comments!