The spectacular price increases in the tight Dutch real estate market will not come to an immediate end. That is what the bank ABN Amro predicts.

Prices on the Dutch market for owner-occupied homes took off last year, with prices averaging 20 percent higher in November than one year previously. Because there are many more candidates than properties on offer, a race has arisen among the potential buyers leading to the rapidly rising prices.

According to the economists of ABN Amro, the price increase in 2021 will clock in at 15 percent, compared to 10 percent in Belgium, and prices will rise further in the two years.

“House prices continue to record highs, mainly due to low mortgage rates. Although the fall in interest rates has come to an end, the mortgage interest remains on balance. This includes that house prices could rise further,” the latest expects Housing market monitor from the bank.

“After a 15 percent increase in 2021, we think house prices will increase by 12.5 percent this year and 5 percent next year.” The bank has had to adjust its financial resources several times.

Increasingly tighter offer

The ABNro study, which is critical of the first real estate measures announced by the Rutte government, predicts that higher prices will start in 2022 with 10 fewer transactions.

“Currently there are hardly any for sale and the new construction is left behind, so that fewer events take place. Homeowners postpone the moment of sale because they first want to find an initial home themselves. With the current price increase, it may take longer to wait for the sale.”

“A nomen to find a solution gets trickier,” a statement from the eco. “In fact, buyers have no choice. Whoever finds something suitable has to decide quickly.”

(mah)