Houses in the Netherlands are known for being so tall and narrow they can look like they’re stretching up towards the sky. Now, their prices are rising sky-high too.
ABN AMRO predicts a 6% increase in owner-occupied house prices this year compared to 2023, according to NU.nl.
This would mean a record high for Dutch house prices. 😥
House prices smash through ceilings
House prices have been falling since July 2022. But if ABN AMRO’s predictions are true, this year could see the highest house prices… EVER.
Why is this happening? There are several contributing factors:
-
Mortgage interest rates are likely to decrease. 🏠
-
Lower ECB (European Central Bank) interest rates are expected later this year. 📉
-
Bigger wages are leading to higher mortgages and offers. 💹
-
Slow construction means few new houses are available. 👷♂️
And the worst part? ABN AMRO believes house prices will continue to grow next year by a further 5%. GULP. 😬
READ MORE | Which experts can save you money when buying a house in the Netherlands?
New buyer? Buy errr…now?
Amidst record-high prices, many brave first-time buyers are taking on the housing market.
Yes, you read that right; because it’s actually a relatively easier time to get started.
This is partly due to landlords selling up because higher taxes and interest rates reduce their rental income.
This means more and more rental properties are becoming privately owned, Pararius director Jasper de Groot told NU.nl.
READ MORE | Is now the time to buy a house in the Netherlands? Here’s what the mortgage experts say
So, when you combine this with more flexible transfer tax rules and less competition from large-scale investment companies, you get better opportunities for first-time buyers (even if it does mean buying in an increasingly pricey market). 💭
Have you had experience recently with buying a house in the Netherlands? Tell us about it in the comments below.
