Increasing house prices in the Netherlands
According to figures from real estate researcher Calcasa, when looking at Western-European countries, the increase of house prices in 2017 was only greater than the Netherlands in Portugal and Ireland. This is not the only piece of evidence for the rapid increase of house prices in the Netherlands.
Data from Statistics Netherlands (CBS) and Kadaster shows the biggest price increase for resale properties in 16 years when comparing house prices in January 2018 with the same month in the previous year. And house prices in Amsterdam have risen several dozen percent in the past years, finds report “Wonen in Amsterdam”.
Dutch house prices compared to Western Europe
Data from Calcasa puts the Netherlands in third place in Western Europe when it comes to the increase of house prices; in 2017, these rose by 8,2 percent. In that year, only Portugal and Ireland’s house prices increased more, namely 12,5 and 11,8 percent respectively.
Placing just behind the Netherlands, are Sweden and Spain, with price increases of 8 and 7,4 percent compared to house prices in these countries a year earlier.
In the EU, house prices rose, on average, by five percent in the last year, and in the last three years, they grew by 13,7 percent. House prices in the Netherlands, on the other hand, showed a much greater increase. The average Dutch house became 20,9 percent more expensive in this three-year period.
Largest price increase in 16 years
Figures from CBS and Kadaster compare house prices from January 2018 to January 2017 and conclude a price increase of 8,8 percent. This is the largest increase in 16 years.
In the Netherlands, in August 2008, house prices reached a peak before falling to a low point in July 2013. Since their low point, house prices have exhibited a rising trend and have already risen by 24,8 percent, on average.
The average price of a resale property in January 2018 is around the same price as it was 10 years ago. House prices are yet to reach the peak level they did in August 2008; they are currently two percent lower.
Amsterdam almost unaffordable
Figures from Wonen in Amsterdam (Living in Amsterdam), a study which observes developments in the housing market in Amsterdam every two years, show a drastic increase in the number of expensive houses compared to the number appropriate for middle-income households.
Despite efforts from the municipality, the percentage of rental / resale houses for middle-income households has decreased from 17,4 to 15,6 percent. The number of properties available in the social housing sector has also dropped. Whilst the percentage of middle-income houses available fell, the percentage of expensive rent / resale properties grew from 21 to 29 percent.
In the last two years, the number of expensive properties grew by more than 9.000. In contrast, only 4.000 middle-income properties entered the market, and of all the 420.000 properties in Amsterdam middle-income houses account for less than seven percent.
The rental sector in Amsterdam is also following trend, and according to Wonen in Amsterdam, renting a property in the private sector costs on average 1.327 euros per month.
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