Dutch housing prices increased at fourth-fastest rate in EU
The Netherlands is in the top five EU countries where home prices increased the most. In the third quarter of 2021, homes in the European Union were worth just over 9 percent more on average than a year earlier. In the Netherlands, they became almost 17 percent more expensive, according to European stats agency Eurostat. Only three other EU Member States saw higher price increases.
The Czech Republic came in first place with a 22 percent year-on-year price increase. Lithuania and Estonia completed the top three with 18.9 and 17.3 percent increases, respectively. House prices rose in all EU countries. The smallest increase was in Cyprus at 2.2 percent.
The supply of owner-occupied homes in the Netherlands is dwindling rapidly, the Dutch Association of Real Estate Agents (NVM) reported earlier this week. Partly because of this, prices are rising so fast. Low interest rates probably also factor in the European price increases. These make it possible to borrow more for a mortgage so that people can bid more on homes. Due to low interest rates, investors often turn to real estate to achieve returns.
Eurostat also calculated how much more expensive homes had become compared to the previous quarter. In the Netherlands, it was almost 6 percent, the strongest quarterly increase in the EU.
Reporting by ANP