Real Estate Market Differs From Other European Markets
Buying a home is a big decision, especially for internationals who are new to the Dutch market. You need to think about all the different factors that are involved, and whether or not it will save you money in the long run.
The Netherlands has a unique real estate market that is very different to the other European markets. For one thing, Dutch home buyers are allowed to finance the full value of their property with a mortgage loan. This makes it much more expensive to buy a home in the Netherlands than in other countries where buyers pay only 10% of the sale price out of their own pocket.
Buyers in the Netherlands are also given a number of tax breaks that make it financially attractive to purchase a home. In addition, the housing ladder and the taxes and regulations that govern the market are both designed to encourage homeowners to buy rather than rent.
Although this has a positive effect on the housing market, it has also led to some negative impacts as well. First of all, high mortgage indebtedness is a problem in the Netherlands, which makes households more vulnerable and increases the risk of fluctuations in the economy.
Another concern is the lack of land available for new building. Many parts of the country are covered with water, and a shortage of construction workers, materials and permits have meant that new homes are not being built as quickly or as widely as they should be.
This has a negative impact on the supply of houses for sale in the Netherlands and contributes to the high price rises that are often seen in the Dutch real estate market.
The Dutch real estate market has been overheated for years and this is causing problems for many people who want to buy their own home. House prices have risen more than 8% on average over the past five years, which is the largest increase since Statistics Netherlands began measuring house prices in 1995.
How the Dutch Real Estate Market Differs From Other European Markets
But now, the Dutch real estate market has started to slow down. The latest data shows that prices are still rising at a healthy pace, but they aren’t as high as they were in previous years.
A report by Rabobank says that high mortgage rates have changed customer preferences and that they are opting for shorter fixed interest rate periods. This has impacted on the maximum mortgages that are available and has a negative impact on the development of house prices.
However, the government has introduced a scheme to help people who are looking to buy their own home, and it’s expected that this will have a positive impact on the housing market.
It’s expected that the price of homes in Amsterdam will continue to rise this year, although it will be slower than it has been in previous years. This is because low unemployment and high job vacancies should continue to attract people to the capital, but other factors, including the rise in interest rates and the economic uncertainty brought on by the war in Ukraine, are likely to put some downward pressure on buying.