Basics on Dutch housing
The Dutch housing market consists of approximately 4.5 mln owner-occupied homes and some 3 mln rental homes.
Total worth residential real estate
Dutch residential real estate had a total worth of over 1.7 bln euros. This is over 3 times the Gross domestic product (GDP) of the Netherlands and over 4 times total household savings.
The Dutch housing market consists of 4.4 mln owner-occupied homes (60% of housing stock), 0.6 mln privately owned rental homes (8%) and 2.3 mln rental homes owned by social housing associations (32%).
Return on residential property investments
In the past decades, the average total return on residential property investments in the Netherlands was around 9%. Total return volatility is relatively low. This is primarily due to stable returns from rental incomes, which amounted to around 4% in the 2003 – 2012 period. Capital returns were more volatile, especially during the 2008 – 2012 economic downturn. The outlook has much improved since.
House sales and house prices
In the 2008 – 2012 period, the Netherlands like many other countries suffered an economic downturn. This led to a slump in house sales and a decrease of house prices. Since 2013 the Dutch economy and the housing market have started to recover. House sales are now showing a double-digit year-on-year increase. House prices are now gradually picking up as well and have gained 5% since the low of mid-2013.
|Number of house sales|
|Price index (2010=100)|
Increasing housing demand
Experts such as the Dutch Central Bank as well as the rating agency Moody’s expect house sales and prices to show a further increase in the following years. A growing number of households leads to increasing housing demand in the medium term. With new housing production having slowed down as a result of the crisis, demand may exceed supply. At the current rate, shortages nearing 300.000 dwellings are projected in the coming years.
|Forecasted number of households|
Furthermore, an improving economy and increasingly dynamic labour market contribute to increasing residential mobility. Economic growth is projected at 2% for 2015, and increasing to 2.4% in 2016. Consumer confidence and confidence in the housing market have increased continuously since the beginning of 2013, and is now almost back at levels seen before the crisis.