The boom in the real estate market in the Netherlands continues
Supply does not keep up with demand, and prices are rising, according to Global Property Guide.
Property prices in the Netherlands continue to rise, supported by record low interest rates, and supply is unable to meet high demand.
Housing on average rose by 6.5 % during 2019. For the fourth quarter of last year, prices increased by 4.2 %.
Real estate in the Netherlands has been steadily growing in price for several years: by 8.5 % in 2018, by 6.9 % in 2017, by 8.8% in 2016, by 4.5% in 2015 and by 2.7% in 2014.
According to the Dutch Central Bureau of statistics (CBS), 218,595 properties were sold in the country in 2019. This indicator remained at the level of 2018,when there was a nearly 10% decrease in sales. Weak sales figures in recent years are due to a lack of supply.
The real estate market in the Netherlands shows an attractive yield for the developed economy – from 3.7 % to 6.4 %.
An apartment in Amsterdam will be expensive — about 6,900 euros per sq. m., according to the Global Property Guide.
You can buy an apartment with an area of 120 sq. m. in the center of Amsterdam for an average of 828 thousand euros. At the same time, you will be able to rent it for 2,570 euros per month with a yield of 3.7 %.
The same apartment in the center of the Hague costs 438 thousand euros. And you can rent it for 2,050 euros per month with a yield of 5.6 %.
Growth in the Dutch economy slowed to 1.7 % in 2019, compared with the previous year’s figure of 2.6 %. This is the lowest level since 2014, according to the Dutch Central Bureau of statistics.
The European Commission forecasts that the country’s economy will continue to slow down: GDP growth will be 1.3 % both this year and in 2021.