Sales of new homes up 69%; Demand for housing will continue to rise

Statistics Netherlands (CBS) reported that the number of newly-built homes sold in the Netherlands rose by over 69 percent in the third quarter of last year compared to the same period a year earlier. Experts at ING predict that the demand for owner-occupied homes in the Netherlands will likely increase further this year, resulting in even higher home prices. The bank expects an increase in the supply of homes for sale, but this number will probably remain very limited.

The number of newly-built homes sold in the Netherlands rose sharply in the third quarter last year, CBS reported based on its own figures and those of the Land Registry. Over 6,500 newly constructed homes were sold in July, August, and September 2024, over 69 percent more than in those months a year earlier.

It was the fourth quarter in a row that sales have increased on an annual basis, according to CBS. Compared to the second quarter, 7.2 percent more newly-built homes were sold.

Existing homes also changed hands more often than in 2023. The number of existing homes sold rose by over 15 percent to more than 54,000.

CBS also looked at the sales prices of newly-built homes. These were 3.6 percent higher in the third quarter than in the same quarter a year earlier and 2.9 percent higher than in the second quarter. Existing home prices rose more sharply, by 11 percent compared to the third quarter of 2023. Buyers had to pay an average of 475,000 euros for a newly-built home and 463,000 euros for an existing one, according to CBS.

Compared to other European countries, home prices in the Netherlands have risen considerably. The prices of new and existing homes together were 10.3 percent higher in the third quarter than a year earlier. That put the Netherlands in fifth place when it comes to the largest price increases. Only Bulgaria (16.5 percent), Poland (14.4 percent), Hungary (13.4 percent), and Croatia (12.3 percent) saw higher increases. Homes in France, Finland, Luxembourg, and Germany became slightly cheaper.

In a forecast of the housing market for this year, ING assumes 10 percent more home sales and a house price increase of 5.5 percent compared to last year. “We therefore expect a less steep home price increase than last year,” the economists said.

Because investors are increasingly putting rental homes up for sale and purchasing fewer existing homes, the price increase is being dampened. In addition, the increase in supply on the market is providing more choices among home seekers, which also has a depressing effect on home prices, according to ING.

The bank’s experts make it clear that the overall picture for the housing market is still upward. “Important reasons for this are the expected increase in the number of households, higher wages, and the positive sentiment,” they said. All this will make more people inclined to put their homes up for sale, but at the same time, there are also more people looking for homes. And they are probably also prepared to offer a bit more.

ING is slightly more conservative with this forecast for home prices than De Nederlandsche Bank (DNB). Last month, the DNB also predicted that home prices would continue to rise. However, the experts at the central bank assumed a price increase of 7.5 percent for 2025. According to DNB, the increase will weaken slightly in 2026. But will likely still amount to more than 4 percent.