The housing market in the Netherlands is breaking records — and this isn’t good news. This July, an existing owner-occupied home was 16% more expensive than in July 2020.
According to Statistics Netherlands and the Dutch Land Registry, this is the largest increase since October 2000, reports the NOS.
The Dutch real estate association NVM points out that to get a home, buyers often have to bid €50,000 above the asking price. Sometimes, things get so extreme that experts speak of “irresponsible overbids.”
READ MORE | Bidding on a house in the Netherlands: how to win
“But if people want to pay for it, they are free to do so,” says the chairman of NVM, Onno Hoes.
Too few houses?
The supply of homes in the Netherlands is running dry and NVM is urging the Dutch government to solve the problem.
READ MORE | Could €20 billion from the government solve the Netherlands’ housing shortage?
However, the housing shortage is not the only explanation for soaring housing prices — there are financial causes as well.
According to De Nederlandsche Bank, one factor contributing to higher housing prices is cheap home financing.
Generous tax benefits for homeowners are another factor leading to a higher demand for owner-occupied homes, highlights the International Monetary Fund.
What’s your experience with the Dutch housing market? Let us know in the comments below!
Feature Image: innervision/Depositphotos
