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.

Housing stock

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%).

The Dutch housing market consists of 4.4 million owner-occupied homes (60%), 0.6 mllion privately owned rental homes (8%) and 2.3 million social rental homes (32%).

Image: (Dutch Housing Survey 2012)

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.  

House sales
Number of house sales
2005-I193900
2005-II196546
2005-III201847
2005-IV206629
2006-I212938
2006-II215549
2006-III213703
2006-IV209767
2007-I207503
2007-II204723
2007-III203002
2007-IV202401
2008-I198117
2008-II195708
2008-III191987
2008-IV182392
2009-I168639
2009-II150894
2009-III135688
2009-IV127532
2010-I128059
2010-II129681
2010-III128845
2010-IV126127
2011-I126740
2011-II124381
2011-III122752
2011-IV120739
2012-I116332
2012-II121428
2012-III113637
2012-IV117261
2013-I116400
2013-II103883
2013-III109830
2013-IV110094
2014-I115967
2014-II127930
2014-III138165
2014-IV153511
2015-I159075
Source table as .csv (679 bytes)
House prices
Price index (2010=100)
2004-II90,3
2004-III91,7
2004-IV91,9
2005-I92,8
2005-II93,9
2005-III95,1
2005-IV95,6
2006-I97,1
2006-II98,2
2006-III99,5
2006-IV99,9
2007-I101
2007-II102,3
2007-III103,8
2007-IV104,2
2008-I105,4
2008-II105,5
2008-III106,7
2008-IV105,9
2009-I105,2
2009-II102,5
2009-III101,1
2009-IV100,3
2010-I100,1
2010-II100,3
2010-III100,4
2010-IV99,2
2011-I98,7
2011-II98,3
2011-III97,5
2011-IV95,8
2012-I94,6
2012-II92,8
2012-III89,1
2012-IV88,5
2013-I86,5
2013-II84,7
2013-III85,1
2013-IV84,8
2014-I85,2
2014-II85,8
2014-III86,6
2014-IV86,6
2015-I87,3
Statistics Netherlands Source table as .csv (654 bytes)

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
Forecasted number of households
20117447339
20127509844
20137572331
20147632063
20157689069
20167744247
20177798587
20187852443
20197906011
20207958893
20218010484
20228060417
20238108021
20248152754
20258194439
20268232952
20278268524
20288301069
20298330455
20308356581
20318379479
20328399283
20338416269
20348430741
20358442895
20368453095
20378461355
20388468055
20398473421
20408477589
Statistics Netherlands Source table as .csv (454 bytes)

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.