Dutch bank ABN AMRO has adjusted its financial expectations for 2024, stating that it now believes that house prices will rise by 4 percent over the next year, with previous suggestions that the rate would be lower, at around 2,5 percent.

Major Dutch bank believes house prices will rise by 7,5 percent by end of 2025

Not only does the bank think that house prices will rise by 4 percent in 2024, but their estimations also see house prices continuing to rise throughout 2025 as well. 

The bank’s data puts the rate of house price rises at around 3,5 percent in 2025, meaning that the cost of buying your own home could increase by up to 7 percent by the end of 2025. The bank explained that the factors behind the changes in expectations are down to a mixture of factors, namely increasing salaries, falling mortgage rates and a shortage of housing. 

Wages rises have increased the affordability of homes in the Netherlands

After a fall in the price of Dutch houses, summer 2023 saw the prices begin to climb once again, as many people saw their wages adjusted for high levels of inflation. Since many people are now receiving higher wages, and inflation has begun to fall, the higher salaries have improved the affordability of homes in the Netherlands.

Despite this, there are still many issues when it comes to the supply of housing in the country. Many Dutch cities struggle with a limited supply of housing and particularly high prices for accommodation in city centres. According to ABN AMRO’s data, there are also more and more single-person households in the Netherlands, which further exacerbates the housing shortage.