House prices

Property prices in the Netherlands are rising at the 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, ranking fourth behind Czechia, Estonia and Hungary .

House prices in the Netherlands increased by 19.5% in 2021

According to CBS, the prices of new construction and existing properties in the Netherlands increased by 19.5% between the start of 2021 and the first quarter of 2022. This means that Dutch housing prices are increasing at a rate significantly higher than the EU average, with the cost of housing in the Netherlands rising at the fourth fastest rate in Europe:

  1. Czechia (+24.7%)
  2. Estonia (+21%)
  3. Hungary (+20.6%)
  4. Netherlands (+19.5%)
  5. Lithuania (+19.1%)
  6. Latvia (+17.3%)
  7. Slovenia (+16.9%)
  8. Ireland (+15%)
  9. Slovakia (+14.2%)
  10. Austria (+13.7%)

Across the bloc, house prices have risen an average of 10.5% over the past year. While Czechia saw the biggest increase, those looking to buy a house in Cyprus saw prices increase by just 1.1%.

The news comes as reports suggest the Dutch housing market is cooling as rental prices rise across the country. The country also continues to face a severe housing shortage as, despite various efforts by the Dutch government, the demand for housing massively exceeds the supply.

Dutch government failing to address national housing shortage

This week, ING said the government’s target of building 100,000 new homes a year was “far from being achieved”, as by 2021 only 71,221 homes had been built. The Dutch bank predicts that there will be even fewer this year and in 2023.

Similar sentiments were shared at the Environmental Assessment Agency (PBL), which released a report this week announcing that the Government’s plans to tackle the housing shortage by building more flexible housing also failed to got off to a good start.

So-called flexible housing is housing – whether temporary new construction or short-lease properties – that is rented for a fixed term. New constructions have a specific “lifespan” and are designed to be easy and quick to construct compared to more traditional residential buildings. The firm aims to establish 15,000 flexible homes a year, but PBL says municipalities and housing associations do not have enough workers to oversee construction projects.

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