ABN Amro: Dutch house prices will rise by 12.5 percent in 2022
-
Loading... - Lucas Foster
- 01 Feb 2022
- 433 Views
- 1 Like
- 0 Comment
House prices in the Netherlands to rise by 12.5 percent
House prices in the Netherlands have become significantly more expensive over the past two years, with 2021 breaking a number of records according to Statistics Netherlands (CBS). While many looking to buy a house in the near future might hope that this trend will taper off in 2022, one prominent Dutch bank has some slightly less encouraging news.
In October 2021, Abn Amro predicted that house prices in the Netherlands would rise by 10 percent in 2022. Now, only one week into the new year, they have updated their projections, announcing in their latest housing market monitor that prices will rise by 12,5 percent in 2022 and by a further 5 percent in 2023. Unsurprisingly, experts predict that property prices in the four largest Dutch cities - Amsterdam, Utrecht, Rotterdam and The Hague - will rise at an even faster rate.
These projections are slightly higher than those published by Rabobank last summer, when economists said prices would rise by 11,5 percent this year. According to figures from ABN Amro, housing in the Netherlands became 15 percent more expensive in 2021.
ABN Amro's projections for the Dutch housing market
ABN Amro attributed the rising prices to low interest rates on mortgages. “Although the mortgage interest rate decline has come to an end due to increased inflation, we think that mortgage interest rates will remain low on balance,” explained senior economist Philip Bokeloh.
Furthermore, Bokeloh said, “Wage developments remain positive thanks to the tight labour market and the economic recovery that is on the horizon once the lockdown measures are reversed” - two factors which further contribute to the rising prices. Read More…
