Residential real estate prices forecast change in the Netherlands 2018-2020

According to quarterly pulse monitors, the growth of residential property prices in the Netherlands is expected to slow down in 2019 and 2020. In 2020, housing prices are believed to increase with three percent. This is significantly less than in August 2019, when residential real estate prices grew with approximately 5.7 percent when compared to the same month a year before. The average price for a house in the Netherlands was approximately 287,000 euros in 2018.

This forecast could change quite drastically, though…

The source mentions there is a lot of uncertainty whether this prediction will hold true. This has to do with the so-called “nitrogen decision” (in Dutch: stikstofbesluit) in May 2019. Simply put, a Dutch advisory body found that the domestic policy for nitrogen emission (formally known as Programmatische Aanpak Stikstof or Programmatic Approach Nitrogen) went against European rules. As of August 2019, a sizable share of the Dutch population was not familiar with this nitrogen policy. However, the advisory body’s decision led to an immediate stop to all construction in the country (amongst other things). By the end of 2019, this stop was still in place.

How about the housing market in Amsterdam?

Amsterdam, Haarlem and Haarlemmermeer (two areas surrounding the Dutch capital) were the cities and/or municipalities with the highest house prices in 2018. On average, a house in Amsterdam sold for over 115,000 euros more than a house in Utrecht. Amsterdam was also well above the average rents found in other cities. A house in Amsterdam had a rent of approximately 23 euros per square meter in 2019, whereas rents in Rotterdam costed roughly 16 euros per square meter. It should be noted, however, that rent changes in the Dutch capital are significantly lower than those found in Rotterdam and especially Utrecht.