Dutch house prices rising at fourth-fastest rate in Europe
New figures released by Statistics Netherlands (CBS) reveal that house prices in the Netherlands are rising at one of the fastest rates in Europe, coming in fourth place behind Czechia, Estonia, and Hungary.
House prices in the Netherlands rose by 19,5 percent in 2021
According to CBS, prices of new build and existing properties in the Netherlands rose by 19,5 percent between the beginning of 2021 and the first quarter of 2022. This means that Dutch house prices are rising at a rate significantly above the EU average, with the cost of housing in the Netherlands rising at the fourth-fastest rate in Europe:
- Czechia (+24,7 percent)
- Estonia (+21 percent)
- Hungary (+20,6 percent)
- The Netherlands (+19,5 percent)
- Lithuania (+19,1 percent)
- Latvia (+17,3 percent)
- Slovenia (+16,9 percent)
- Ireland (+15 percent)
- Slovakia (+14,2 percent)
- Austria (+13,7 percent)
Across the bloc, house prices rose by an average of 10,5 percent over the course of last year. While Czechia recorded the most significant increase, those looking to buy a house in Cyprus saw prices rise by just 1,1 percent.
The news comes as reports suggest that the Dutch housing market is cooling off while rental prices rise across the country. The country also continues to face a severe housing shortage as, in spite of various efforts made by the Dutch government, the demand for housing massively outweighs the supply.
Dutch government failing to tackle national housing shortage
This week, ING reported that the government’s aim to build 100.000 new homes a year was “a long way off,” as in 2021 only 71,221 houses were built. The Dutch bank predicts even fewer will be completed this year and in 2023.
Similar sentiments have been shared over at the Environmental Assessment Agency (PBL), which published a report this week announcing that the government’s plans to combat the housing shortage by building more flex housing weren’t off to a great start either.
So-called flex housing is accommodation - either temporary new-builds or short-lease properties - which are rented out for a fixed period of time. The new builds have a specific "shelf life" and are designed to be easy and quick to build in comparison to more traditional residential buildings. The cabinet aims to establish 15.000 flex homes a year, but PBL says municipalities and housing associations don’t have enough workers to supervise the building projects.