Netherlands' average home value up 8.6 percent to record high

The average value of homes in the Netherlands has again risen to a record high, Statistics Netherlands (CBS) reported. On 1 January 2022, the average home was worth 8.6 percent more than a year earlier at a value of 315,000 euros.

Every year, municipalities determine the Valuation Immovable Property (WOZ) value of every home in the Netherlands by looking at the house prices from the previous year. As a result, this value increases with a one-year delay if house prices rise. This indication of house values is important for homeowners because several taxes are calculated on it.

In Amsterdam, house prices experienced the second lowest increase of all municipalities. The WOZ value here rose by only 2.1 percent compared to 2021. In Noordeast-Fryslan, house prices rose the most at 19.5 percent. Of the four largest cities, home prices in Rotterdam rose the fastest, with 11.4 percent. The WOZ value is highest in Bleomendaal at 828,000 euros and lowest in Pekela at 167,00 euros.

Homeowners often have to pay more tax if their WOZ value goes up. Municipalities base the property tax and sometimes also the sewage levy on this value. Some other taxes can also be determined based on the WOZ value, including the gift tax and inheritance tax. On the other hand, mortgage interest can sometimes decrease after a rise in the WOZ value, and it also becomes easier to sell a house, the homeowners’ association VEH said on its website.