Dutch home prices to increase 15.5% by end 2025: ABN Amro

Home prices will continue to rise in 2025, although the growth will slow slightly compared to this year, according to economists at ABN Amro. Their report on the housing market predicts owner-occupied homes’ prices will increase by 8.5 percent in 2024 and 7 percent in 2025. That is higher than the bank’s previous forecast of 7.5 percent this year and 5 percent next year.

Home prices are mainly driven by wage increases and falling mortgage interest rates. This allows people to borrow more money. “This increases competition in the housing market and people are overbidding more often,” said Philip Bokeloh, Housing Market Economist at ABN Amro. According to him, the increased confidence of potential home buyers is also having an upward effect on house prices.

Bokeloh notes that prices for existing homes are rising faster than those for newly built ones. “In combination with the lower mortgage interest rate, new homes are becoming more attractive again. This leads to more families moving to new homes and their existing homes becoming available,” said the economist.

It also ensures that more homes change owners. However, ABN Amro expects this effect to largely disappear next year. The flow of new homes will likely stagnate in the course of 2025 due to a lack of newly completed homes.

So far, around 90,000 homes have been started that will not be completed for another one to two years. “As a result, the government target of at least 100,000 new homes annually remains out of sight for the time being,” noted Bokeloh.