Housing market in the Netherlands in 2022

Housing market in the Netherlands in 2022

Should you buy a house on the Dutch housing market?

To 'expat mortgages'

Many expats buy a house in the Netherlands to improve their living comfort and save on expensive rental costs. Are you considering purchasing your own property too? Then you’ve probably already heard that the Dutch real estate market is tight and house prices are high. Home ownership is hot in Holland! What’s going on exactly on the housing market in the Netherlands of 2022? Should you buy a home, or should you wait? Read this article for up-to-date information about the housing market and smart tips to improve your chances of buying a house.

Housing market Netherlands

Crazy days on the Dutch housing market in 2022

The property market in the Netherlands has been tight for years. House prices have never been higher than in 2022 and overbidding on a house is the rule rather than the exception. In Q4 2021 overbidding happened in 80% of the purchases. 

The expectation is that this will continue for some time. We’ll explain this with Dutch housing market data of Hypotheken Data Netwerk, NVM,  Kadaster, Rabobank and ABN Amro.

Housing shortage in the Netherlands still on the rise

On the housing market in the Netherlands in 2022 there’s a growing need of available houses to buy. There are several reasons for this housing shortage in the Netherlands:

  • Since the last crisis not enough homes have been built and the number of houses built each year is dropping. Due to the nitrogen crisis building slowed to a standstill the last years with a further decrease of completed homes.
  • More people want to buy a house, so new buyers are entering the market. The number of households is growing, the mortgage interest rates are low and rental prices are high. This makes buying a house in the Netherlands very attractive.
  • Investors drive up house prices by investing in buy to let properties, because they can afford to buy houses for a higher purchase price. Fortunately, the government is taking measures. Last year they increased property transfer tax for investors to 8% and in some municipalities houses until a certain price range can only be bought to live in yourself. 

Houses for sale

The housing shortage in the Netherlands will continue well into 2022. The number of houses for sale on the market keeps dropping every year. In Q4 2021, there're 23% less houses sold than one year earlier and 33% less houses for sale. Due to this shortage, potential buyers can now only choose between 1.3 houses, the lowest number so far.

House prices in the Netherlands expected to keep rising

Due to this scarcity of available houses of the last years, house prices in the Netherlands have been increasing since the all time low in 2013. Then Dutch house prices started rising again. In Q4 2021, the average purchase price of a house in the Netherlands was € 438,000, almost 21% higher than a year before. This makes the current house price in the Netherlands highest it has ever been.

House prices in 2022

Banks like ABNO Amro and Rabobank expect house prices to keep rising in 2022. The prediction is that the highest price increases on the housing marketing in the Netherlands are behind us. However, they still expect an increase of house prices of about 15% in 2022. After this year, that price increase is predicted to level off until a few percent a year. 

Overbidding on a house

Not only are house prices high on the Dutch housing market, overbidding on a house has become the norm. In 2019, 40% to the houses was sold above the asking price. This was the first time ever that overbidding happened so often in the Netherlands. However, in 2021 overbidding on houses doubled: it happened in 80% of the purchases.

Because overbidding seems to be the new standard, it leaves you with almost no room for negotiating on the housing market of the Netherlands in 2022. Especially not if you want to buy a house in a popular city like Amsterdam, Eindhoven, Haarlem or Utrecht. In these places the asking price can be often considered to be the opening bid and you are expected to overbid.

Overbidding and your mortgage in the Netherlands

Partly due to overbidding, savings are becoming more and more important on the housing market of the Netherlands in 2022. If you want to buy a house you need to bring a lot of savings to the table. You can get a Dutch mortgage up to 100% of the market value of your house. All the extra costs purchase cost to buy a house and the amount that you overbid on the value of the house to win the offer, you’ll have to pay out of your own pocket. 

Calculation example overbidding on a house

  • Asking price: € 410,000
  • Purchase price: € 465,000
  • Appraisal value: € 440,000
  • Maximum mortgage: € 440,000
  • Savings needed: € 25,000 > the difference between the purchase price and the appraisal value

Beware that the amount of savings in this example doesn’t include the purchasing costs and financing costs you’ll have to pay when buying a house in the Netherlands (about 3 to 6% of the purchase price). This calculation example only covers the amount of savings needed for overbidding.

To buy or not to buy a house in the Netherlands?

In summary, the Dutch housing market stays tight and house prices are expected to keep rising. However, nobody knows for sure what's going to happen on the real estate market. It's a scientific fact that economic trends and house prices developments can't be foreseen.

So to buy or not to buy a house in the Netherlands? If you want purchase a property and you can afford it, you should. We don't advise you to wait for a drop in house prices.

House prices move up and down, and the value of your house will probably increase in the near future. In the long term the value of your property will rise for sure. Besides the developments in house prices, buying a house will increase your living comfort and it's cheaper than renting. 

How to improve your chances on the Dutch housing market?

Because of the tight Dutch housing market of 2022, buying a house in the Netherlands might seem nearly impossible. But don’t despair! Although it’s difficult to buy a house, it is possible. After all, every day houses are being sold and bought by happy new homeowners. 

A good preparation strongly increases your chances of buying a house on the housing market in the Netherlands. Follow these three tips to help you purchase your dream house:

  • Hire a real estate agent: if your house hunting in a popular area, a realtor will give you a much better shot at actually buying a house. He or she has knowledge of the local housing market and knows in advance which houses will come on sale. With an estate agent you’ll be one up on your competition.
  • Put in a good opening bid: take your opening bid into careful consideration (an estate agent can also advise you on this!). If your offer on a house is too low, you’re out. However, if you overbid too much, you're wasting your money.
  • Book a free appointment with a mortgage advisor: it’s important to explore your mortgage options in the Netherlands in advance. This way you’re sure about your budget and you might be able make your offer more attractive by leaving out the financing clause. Want to know what’s possible for you? Book a free consultation with our experienced mortgage advisors.

Do you want to know more about buying a house in the Netherlands? Please read our article or sign up for our free housing webinar 'how to buy a house in the Netherlands'. We're happy to help you purchase your own property.

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