Home prices in NL to increase 4% this year: ABN Amro

The price increases on the housing market in the Netherlands will level off this year, but prices will still rise, according to analysts at ABN Amro. They predict that home prices will increase by 4 percent in 2020, compared to last year's 7 percent increase, NU.nl reports.

"The housing market will receive less support from the economy the coming year," ABN Amro economist Philip Bokeloh said. "We think GDP growth will be reduced to 1 percent. In addition, stricter lending standards will put a brake on price rises. Although the second income plays a bigger role from now on, families are allowed to borrow less based on their income."

But house prices will continue to increase thanks to the low interest rates and the small supply on the housing market, Bokeloh added. Especially buyers with a lower budget have few options to choose from. The number of issued permits for housing construction is also declining, which means that the number of newly built homes will likely be lower than expected.