What you need to know about Dutch housing prices in 2024
Buying a house in the Netherlands has been a challenge over the past few years. The market is experiencing a severe shortage in affordable housing and many Dutch residents find themselves unable to buy or rent properties. This has led to a rise in the rate of homelessness and has caused many renters to struggle with paying their rent every month.
In 2023, the market saw a drop of 3% in housing prices, with the most significant drops occurring in Amsterdam, the Hague and Utrecht. However in 2024, housing prices have started going up again and it is expected that this trend will continue on in 2025 as well.
Why house prices are going up
One straightforward answer for why housing is becoming more expensive this year is inflation. Because there has been a significant increase in wages, house prices have gone up.
According to ING Bank, wages in the Netherlands were 6,9 percent higher in the latter part of 2023 than the year before. In 2024, wages are expected to continue going up slightly but not to the same extent as in 2023.
Fewer houses being built
There are fewer houses for sale in the Netherlands, partly due to a dip in new construction. New regulations from the Dutch government have caused many investors in the private sector to quickly sell off their properties in the beginning of the year, which has led to a reduction in available houses and has slowed down new construction.
This means that the house prices are expected to rise. According to economists from RaboResearch, they anticipate a 6,2 percent increase in house prices this year, in 2024, and a similar percentage the year after.
First-time home buyer exemption
As of January 1, 2023, first-time home buyers between the ages of 18 and 35 in the Netherlands were eligible for an exemption from paying a transfer tax (2 percent). This has led to more homes being taken quickly off the market as there was more incentive for those who had never bought a home before.
House prices in other regions
Houses in the Netherlands are becoming more expensive although there are some differences between specific regions. In regions where houses are still relatively affordable, such as Groningen, Limburg, Drenthe and Friesland, the prices are likely to rise more strongly. But even in regions where supply significantly lags behind demand, such as in the Randstad area, the prices will also increase sharply.
The bright side
However, it's not all bad news. Although houses are becoming more expensive these days, those who want to buy a house may be able to secure a higher mortgage due to rising wages and the slight drop in mortgage interest rates. This means that you could potentially borrow more money from the bank and pay less interest on it than the year before.
Not sure how much you can expect to pay every month for a mortgage in the Netherlands? Use the mortgage calculator from Expat Mortgage Platform to find out.
Expat Mortgage Platform: Get professional mortgage advice
Expat Mortgage Platform collaborates with every mortgage lender in the Netherlands. They know better than anyone what is happening in the Dutch housing market and have connections to real estate agents and sellers. By consulting one of their mortgage advisors, you increase your chances of securing an affordable home that meets all of your specific needs.
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