Dutch house prices should fall in the new year, says report

Looking to buy a house in the Netherlands? Then 2021 might be the year for you! Prices are expected to drop between the new year and 2022, according to a report released today by Rabobank.

By 2022, the Dutch bank expects house prices to fall by about 2.6%, but in the first quarter of 2021 prices will already drop by 0.8%. The report also predicts house sales to drop from 220,000 to 190,000 in 2021.

Buyers and investment

First-time house buyers are expected to diminish in the coming year, as they tend to have been hit harder by the crisis. Those previously interested in upgrading their housing are probably going to be more hesitant to do so. This is because many still fear losing their jobs as a result of coronavirus.

Since tourists, expats and foreign students will be decreasing during this time, investment into the housing market is also expected to drop.

Recovery

In the coming year, Rabobank predicts the Dutch economy to shrink by 5.2%, with a small recovery of 2% in 2021 β€” assuming there is a vaccine by then.

After 2022, the large housing shortage and low mortgage interest will push prices up again. The bank expects the Dutch economy to only really normalize again from mid-2021.

Are you planning a house in the Netherlands? Will you wait? Tell us in the comments below!

Feature Image: PublicDomainPictures/Unsplash

Emily Burgerhttps://emilycburger.wixsite.com/expression
Emily grew up in South Africa but has also lived in Egypt, the UK, Canada and now the Netherlands. She first came here for her Bachelors in Arts and Culture at Maastricht University and soon fell in love with the land of canals, clogs and cheese. When she's not daydreaming about sci-fi movies or countries yet to explore, you can find her writing for DutchReview.

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