September 10, 2016

House prices in the Netherlands are booming again after the global financial crisis in the year 2008 stopped a steadily growth of over 15 years abruptly.

The Dutch housing market started to recover in the year 2014. By the second quarter of 2006 house prices in the Netherlands had risen 13,3% on three year earlier. With an increase of 12,3% in Amsterdam, the city in the Netherlands that best withstands the correction in the period 2008-2014.
In particular gross rental yields in the small up-market sector are good. In Amsterdam apartments have a yield of around 5%. The corrected real estate prices in combination with good yields in many of the real estate sectors have already attracted foreign investors. Chinese and German investors bought for substantial amounts a large stake of the commercial real estate located on the Zuidas, the financial district of Amsterdam. Even social housing has become a very popular sector for large international investors.
The rebound does not seem to be a temporary. Interest rates are low, the Dutch economy is vibrant and very diversified. Rabobank, one of the large players on the Dutch mortgage market, forecasts that house prices in the Netherlands will increase by 3,5% to 5,5% this year and 5%-7% in the year 2017.