What is Happening on the Real Estate Market in the Netherlands?

What is Happening on the Real Estate Market in the Netherlands?

According to the latest data, housing prices in Holland have noticeably slowed down, they are not growing at the same rate as before. This is directly related to the decline in demand, combined with an acute shortage of housing.

During 2019, up to the 3rd quarter, the average purchase price of all houses increased by 4.41%. This is nothing more than a sharp slowdown compared to an increase of 8.45% in the previous 2018. Analysts claim that this is the second-lowest rate of growth in housing prices since the 3rd quarter of 2015. On a quarterly basis, housing prices increased slightly by 0.64% over the last quarter.

Home sales fall amid supply shortages
According to a study by Statistics Netherlands (CBS), the following picture appears. In the first nine months of 2019, the number of housing units sold decreased by almost 2% (to 158,872 units, respectively), when compared with the previous year, when the figure reached 10%. The decline in sales was partly due to an exacerbation of the supply shortage. This year, housing shortages in the Netherlands were estimated at approximately 200,000 units.

Rent, rental yield: attractive returns for a developed economy this year range from 3.7% to 6.4%. The cost of apartments in Amsterdam, on average, is about €6900 per square meter.

State of the economy
According to CBS, the Dutch economy grew 1.9% in the 3rd quarter of 2019 compared to a year earlier. This indicator is slightly higher than the annual one, which amounted to 1.8% in the 2nd quarter and 1.7% in the 1st quarter due to an increase in household consumption and investment in fixed assets.

According to European Commission forecasts, Dutch GDP is expected to grow 1.7% in 2019 and 1.3% in 2020. This is a slowdown compared to 2.6% in 2018 and 2.9% in 2017, respectively.

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