Rabobank: Housing market to grow through 2016

An empty farmhouse for sale in The Netherlands. Source: Wikimedia/HardscarfAn empty farmhouse for sale in The Netherlands. Source: Wikimedia/Hardscarf

After a better-than-expected first quarter, the growth of the Dutch housing market is going to continue in 2015 and 2016, according to Rabobank. Housing prices are expected to rise between 1.5 and 3.5 percent during 2015, the bank's analysts say.

A mild acceleration of prices is expected in 2016 with prices rising between two and four percent. In the coming two years, 320 to 360 thousand houses are going to change ownership, the bank forecasts.

"It is significantly better with the Dutch economy, which began this year strongly," comments housing economist Pieter van Dalen to Rabobank. "For the housing market it is good that employment improves and disposable income is rising. The low mortgage interest rates and high consumer confidence are reasons why we expect further growth."

Despite regional differences, economists at Rabobank expect the housing market to grow in all of the Dutch provinces. "This is mainly because mortgage has no regional differences," Van Dalen commented. "The income growth and confidence in the economy also do not differ greatly be region. We do see an above average increase in Noord-Holland and Utrecht."