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Dutch house prices experience largest increase ever recorded
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Dutch house prices experience largest increase ever recorded

By Victoria Séveno
Jul 12, 2021

House prices in the Netherlands continue to climb, breaking a new record every month. In June, it was reported that house prices had experienced their sharpest increase in 20 years. Now, figures show that, for the first time in history, the price of the average house in the Netherlands has exceeded 400.000 euros. 

Dutch house prices rise by almost 20 percent

Anyone looking to buy a house in the near future should consider themselves warned: figures show that, in the second quarter of this year, the average house price in the Netherlands was 410.000 euros, with the price of the average detached house rising by 23,4 percent to 618.000 euros. This spring saw the country experience the sharpest increase in house prices since records began in 1995. 

Compared to the second quarter of 2020, prices have increased by almost 20 percent, according to figures released by real estate association NVM. Interestingly, while Amsterdam is known for its excessive prices, NVM has revealed that the Dutch capital has now experienced one of the smallest increases - “only” 13,9 percent compared to Friesland where some areas experienced an increase of a whopping 30 percent.

According to the European statistics office Eurostat, this trend can be observed across Europe. In the first quarter of this year, houses across the continent experience a price increase of 5,8 percent compared to the same period last year - the sharpest increase since 2004. Perhaps unsurprisingly, Eurostat reports the Netherlands as experiencing one of the most significant price hikes.

Who's to blame for rising house prices in the Netherlands?

According to the experts at NVM, this price hike can be attributed to a limited housing supply, coronavirus, and a growing trend of over-bidding for properties. According to NVM’s Lana Gerssen, three out of four homes are sold for more than the asking price.

With many continuing to work from home as a result of the coronavirus crisis, people decided to ditch the city and move into more rural areas as they were no longer concerned about long commutes. This trend saw house prices outside of the major Dutch cities rise at a significant rate.

Lastly, according to NVM, a total of 34.254 homes were sold in the second quarter of 2021, 12 percent less than in the same period last year, proving that the housing supply in the Netherlands continues to shrink, further adding to the over-bidding issue. “The supply is still drying up and buyers are doing everything they can to get hold of a home," explains NVM chairman Onno Hoes.

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Victoria Séveno
Victoria grew up in Amsterdam, before moving to the UK to study English and Related Literature at the University of York and completing her NCTJ course at the Press Association in London. She has a love for all things movies, animals, and food. Read more

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