House prices up 6.55% y-o-y in 2019
The Netherlands’ house prices continue to rise, buoyed by record low interest rates, and with supply unable to keep up with strong demand. The average purchase price of all dwellings rose by 6.55% during 2019, following y-o-y increases of 8.49% in 2018, 6.92% in 2017, 8.78% in 2016, 4.5% in 2015 and 2.72% in 2014. On a quarterly basis, house prices increased 4.24% during the latest quarter.
Home sales are steady amidst supply shortages
In 2019, the number of dwellings sold was almost steady at 218,595 units compared to a year earlier, following an almost 10% decline in 2018, according to Statistics Netherlands (CBS). The weak sales figures in recent years were partly due to worsening supply shortages.
The housing shortage in the Netherlands was estimated at about 200,000 units this year.
Rents, rental yields: attractive yields for a developed economy at 3.7% to 6.4%
Amsterdam apartment costs are around €6,900 per sq. m.
|Netherlands: typical city centre apartment buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
|Amsterdam||€ 828,240||€ 2,569||3.72%|
|The Hague||€ 438,360||€ 2,050||5.61%|
Recent news: The Dutch economy grew by 1.7% in 2019 from a year earlier, a slowdown from the previous year’s 2.6% growth and the lowest level since 2014, according to Statistics Netherlands. The economy is expected to slow further, with projected GDP growth of 1.3% both this year and in 2021, according to the European Commission.