Are property prices in the Netherlands cooling down? Should you still invest in real estate?

Housing market
Co-Founder BRXS
Filip Nuytemans
Co-Founder BRXS
March 16, 2023

After a year when housing prices skyrocketed, the housing market in 2022 seems to be cooling down. What’s happening exactly in the Dutch housing market of 2022 and what are the forecasts? 

According to Statistics Netherlands (CBS) figures, the pace of the increase in Dutch housing prices is slowing down. 

Did you read it too? Property prices in the Netherlands in the first quarter of 2022 are slightly lower than last year*. Surprising? Yes, especially when we have been reading reports of skyrocketing growth for years 🚀. 

This blog post will provide you with the latest information on the Netherlands housing market 2022 and help you answer the most important question: “Why still invest in real estate in those volatile times?”

🕵️  Situation on the housing market in the Netherlands

The property market in the Netherlands seems to be cooling down in 2022. When a hot housing market cools down a bit, it doesn’t mean home prices are plummeting (or even going down). It just means they’re growing at a slower rate. If we take a look at the numbers, the drop is relatively small at 2.1%, and if you compare it with a year earlier, prices are still 13.7% higher. 

So what could be the explanation:

🔮 What does the future hold?

Nobody can predict the future, duh 😏! This said, most real estate experts such as NVM and ABN Amro** continue to predict that house prices will rise because the demand for houses is still much greater than the supply. This gap is long-term and structural, and will probably not be closed any time soon, but the rise in mortgage interest rates may make growth a little bit more modest. The latter is a good thing: better to have sustainable growth than overheated growth.

ABN Amro predicts a 12.5% increase for 2022 and a 5% increase for 2023.

🎢 Why still invest in real estate in those volatile times:

In today’s uncertain times with high inflation, falling stock markets and 0% interest on your savings account, it is hard to find the right spot for your money. Real estate has historically proven to be a great alternative in such periods. 

To sum up

In summary, the Dutch housing market stays tight, and house prices are expected to keep rising. But after years of crazy home price growth, in 2022 the housing market is calming down. 

With Brxs, we make it very easy to invest in specific real estate starting at €100 and you earn interest through rental income (paid quarterly) and potential appreciation in the longer term 💰.

🏡 Interested to have a try?

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