House prices up 15.33% during the year to Q3 2021

The Netherlands’ house prices continue to accelerate, buoyed by record low interest rates, and with supply unable to keep up with strong demand. The average purchase price of all dwellings rose strongly by 15.33% during the year to Q3 2021, up from the previous year’s 7.36% growth. It was the country’s best showing since Q2 2000. On a quarterly basis, house prices increased 5.18% during the latest quarter.

 

Home sales steady amidst supply shortages

In the first ten months of 2021, the number of dwellings sold was almost unchanged y-o-y at 189,480 units, following 7.7% growth in 2020, according to Statistics Netherlands (CBS). 

During 2020, dwelling completions fell by 3.1% from a year earlier, to 69,322 completions – inadequate to meet the surging demand. 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: In Q3 2021, the Dutch economy grew by 5% from a year earlier, following a 10.4% expansion in the previous quarter, mainly driven by a strong rebound in household consumption and trade, according to the CBS. 

The economy is projected to grow by 4% this year, following a decline of 3.8% in 2020, according to the European Commission. The Dutch economy grew by an annual average of just 1.4% from 2010 to 2019.