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The Dutch property market is experiencing a significant upward trend in June 2025.
Property prices in the Netherlands are rising sharply, with the average home price reaching €472,000 as of June 2025, marking a 10.2% year-on-year increase. This growth is driven by falling mortgage rates, persistent housing shortages, and rising household incomes across the country.
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Dutch property prices have increased by 10.2% year-on-year as of June 2025, with the average home price reaching €472,000. Mortgage rates are falling due to ECB rate cuts, currently averaging 3.2-4.5% for fixed-rate mortgages.
Regional differences are significant, with Utrecht and Groningen seeing the highest growth rates at 12.9%, while Amsterdam remains the most expensive city at €632,733. The market is expected to continue rising through 2025-2026, though at a more moderate pace.
| Key Metric | Current Value | Year-on-Year Change |
|---|---|---|
| Average Property Price | €472,000 | +10.2% |
| Amsterdam Average | €632,733 | +6.4% |
| Rotterdam Average | €406,180 | +8.8% |
| Utrecht Average | €528,000 | +14.2% |
| Mortgage Rate (10-year) | 3.4-3.5% | -0.33% |
| 2025 Price Forecast | €488,000-€520,000 | +5-9% |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What is the current average property price in the Netherlands as of June 2025?
The average property price in the Netherlands has reached €472,000 as of June 2025.
This represents a significant increase from the previous year, with property values continuing their upward trajectory despite earlier predictions of market stabilization. The national average reflects the ongoing housing shortage and strong demand from both domestic and international buyers.
In major cities, prices are notably higher than the national average. Amsterdam leads with an average price of €632,733, which is approximately 34% above the national average. Utrecht follows with properties averaging around €528,000, while The Hague stands at €480,000.
Rotterdam remains the most affordable among the four largest cities, with an average price of €406,180, which is still 13.6% below the national average. This makes Rotterdam an attractive option for first-time buyers and investors looking for more reasonable entry points into the Dutch property market.
It's something we develop in our Netherlands property pack.
How much have property prices increased in the Netherlands lately?
Property prices in the Netherlands have increased by 10.2% year-on-year as of June 2025.
This double-digit growth marks a significant acceleration from the more modest increases seen in 2023 and early 2024. The House Price Index for Existing Homes rose from 134.5 in June 2024 to 147.6 in April 2025, indicating sustained momentum in the market.
Monthly price increases have been steady but are showing signs of moderation. In April 2025, prices rose by 0.7% compared to March, down from the 1.2% monthly increases seen in late 2024. This suggests the market is beginning to find a new equilibrium after the rapid recovery.
The current price levels have surpassed the previous peak reached in July 2022. Properties are now 11% more expensive than they were at that historical high point, demonstrating the market's resilience and the fundamental supply-demand imbalance driving prices upward.
Transaction volumes have also surged, with nearly 19,000 homes sold in April 2025 alone, representing a 21% increase compared to the same month in 2024.
Which regions in the Netherlands are seeing the biggest property price increases?
Utrecht and Groningen provinces are experiencing the highest property price growth in the Netherlands.
These regions recorded annual price increases of 12.96% and 12.95% respectively in the first quarter of 2025. Drenthe and Overijssel also showed robust gains of 12.66% and 12.36%, outpacing the national average significantly.
| Region | Annual Price Increase | Key Driver |
|---|---|---|
| Utrecht Province | 12.96% | Tech sector growth, university expansion |
| Groningen Province | 12.95% | Energy transition investments |
| Drenthe | 12.66% | Remote work migration |
| Overijssel | 12.36% | Manufacturing sector strength |
| Utrecht City | 14.19% | Limited supply, high demand |
Among major cities, Utrecht city leads with a 14.19% year-on-year increase, followed by The Hague at 10.75%. Rotterdam saw an 8.83% increase, while Amsterdam recorded the most modest growth among major cities at 6.36%.
The northeastern regions of the Netherlands, traditionally more affordable, are catching up rapidly as buyers seek value outside the expensive Randstad area. The Delfzijl region in particular has been highlighted as a hotspot, with some forecasts predicting up to 16% growth in certain areas.
What property types are experiencing the fastest price growth in June 2025?
Terraced houses are experiencing the highest price growth among all property types in the Netherlands.
These intermediate family homes have become particularly sought after as they offer a good balance between space and affordability. With average prices around €575,000, they represent a middle ground between apartments and detached homes, making them attractive to growing families.
Apartments in urban areas are seeing strong demand, particularly due to the sell-off by landlords following new rental regulations. Transaction volumes for apartments have surged, especially in cities like Amsterdam and Rotterdam where rental properties are being converted to owner-occupied homes.
Semi-detached homes are averaging €750,000, while detached properties command premium prices exceeding €1,100,000. Interestingly, detached houses have shown the lowest price growth rates, as their high absolute prices limit the buyer pool to wealthier segments.
Urban apartments in desirable neighborhoods start from €450,000, making them increasingly popular among young professionals and first-time buyers who value location over space.
What are the current mortgage interest rates in the Netherlands?
Mortgage interest rates in the Netherlands currently range from 3.2% to 4.5% for fixed-rate periods as of June 2025.
The lowest rates are available for 5-year fixed mortgages, with providers like Woonnu offering rates as low as 3.24%. For 10-year fixed periods, rates typically range from 3.43% to 3.5%, with major banks like Rabobank and ABN AMRO being competitive in this segment.
| Fixed Period | Lowest Rate | Average Rate | Best Provider |
|---|---|---|---|
| 5 years | 3.24% | 3.4% | Woonnu |
| 10 years | 3.43% | 3.5% | Rabobank |
| 20 years | 3.75% | 3.9% | Tulp Hypotheken |
| 30 years | 3.91% | 4.1% | Tulp Hypotheken |
| Variable | 3.79% | 4.2% | Aegon |
The European Central Bank has been cutting rates throughout 2024 and into 2025, with the deposit facility rate now at 2.25%. This has led to a gradual decline in Dutch mortgage rates, though the transmission has been slower than in previous cycles.
Banks are offering various discounts, including 0.35% reductions for clients who have their salary paid into accounts with the lending bank, and additional discounts for energy-efficient homes with B-labels or higher.
How do current prices compare to 5 and 10 years ago?
Dutch property prices have nearly doubled over the past decade and increased by approximately 65% in the last five years.
Ten years ago in 2015, the average property price in the Netherlands was approximately €220,000. This means current prices at €472,000 represent a 114% increase over the decade, averaging more than 8% growth per year.
Five years ago in 2020, the average price stood at around €286,000. The 65% increase since then reflects the particularly strong growth during the pandemic period and subsequent recovery, driven by ultra-low interest rates and changing housing preferences.
The compound annual growth rate over the past decade has been approximately 7.9%, significantly outpacing inflation and wage growth. This has made homeownership increasingly challenging for first-time buyers, particularly those with single incomes.
It's something we develop in our Netherlands property pack.
What are the property price forecasts for 2026 and beyond?
Property prices in the Netherlands are expected to increase by 5-9% throughout 2025, with more moderate growth of 3-5% annually in 2026-2027.
Major banks and research institutions have converged on similar forecasts. ABN AMRO predicts a 7% increase for 2025 and 3% for 2026, while Rabobank forecasts slightly higher growth at 8.6% for 2025 and 5.7% for 2026.
By the end of 2025, the average Dutch house price is projected to reach between €488,000 and €520,000, depending on various economic factors. The wide range reflects uncertainty about interest rate trajectories and potential policy interventions.
For the longer term spanning 10-20 years, structural factors suggest continued price appreciation, albeit at more sustainable rates. The persistent housing shortage, with an estimated deficit of 400,000 homes, combined with ongoing population growth and urbanization trends, will likely support prices.
However, affordability constraints are expected to act as a natural brake on excessive price growth, particularly as the ratio of house prices to average incomes approaches historical limits.
How have the 2024 Dutch housing reforms impacted property prices?
The Affordable Rent Act and new tax measures introduced in 2024 have triggered a significant sell-off of rental properties, increasing supply in the owner-occupied market.
These reforms made buy-to-let investments less attractive by implementing stricter rent controls, higher transfer taxes for investors (10.4% versus 2% for owner-occupiers), and increased wealth taxes on rental properties. As a result, many landlords are choosing to sell rather than continue renting.
The increased supply from investor sell-offs has particularly benefited the apartment market in major cities. Transaction volumes for apartments have surged, with cities like Amsterdam and Rotterdam seeing 26% and 28% more sales respectively in recent months.
While the reforms have somewhat tempered price growth in investor-heavy areas like Amsterdam's city center, the overall effect on prices has been limited due to the persistent underlying shortage. The additional supply is being quickly absorbed by eager owner-occupiers.
The policy changes have successfully shifted properties from the rental to the owner-occupied sector, improving opportunities for first-time buyers while maintaining overall market stability.
How is the ECB's interest rate policy affecting Dutch property prices in 2025?
The European Central Bank's rate-cutting cycle is providing significant support to Dutch property prices in 2025.
Since beginning its easing cycle in June 2024, the ECB has reduced rates by 175 basis points, bringing the deposit facility rate to 2.25% by April 2025. This has translated into lower mortgage rates in the Netherlands, though the transmission has been gradual.
Dutch mortgage rates have fallen from peaks above 5% in 2023 to current levels of 3.2-4.5%, improving affordability and borrowing capacity. A typical household can now borrow approximately 10% more than a year ago at the same monthly payment.
Market expectations suggest the ECB will continue cutting rates through 2025, with the deposit rate potentially reaching 1.5% by year-end. This would likely push Dutch mortgage rates even lower, potentially approaching 3% for the most competitive fixed-rate products.
The combination of falling rates and rising incomes is creating a powerful stimulus for housing demand, contributing directly to the current price appreciation and supporting forecasts for continued growth through 2026.
Is demand for residential real estate increasing or decreasing in mid-2025?
Demand for residential real estate in the Netherlands is strongly increasing as we reach mid-2025.
Transaction volumes rose by 15.82% year-on-year in the first quarter of 2025, with momentum continuing into the second quarter. The number of mortgage applications has surged, and properties are selling faster than at any point since 2021.
First-time buyers are particularly active, aided by the abolition of transfer tax for buyers under 35 and improving mortgage affordability. Young households now represent over 60% of purchases in the affordable housing segment.
The combination of rising wages (up 6.7% on average), low unemployment (3.5%), and an increasing number of households (104,000 new households formed in 2024) continues to fuel demand. The tight labor market ensures job security and wage growth prospects remain strong.
Supply remains constrained despite the investor sell-offs, with only 70,000 net new homes added in 2024 after accounting for demolitions. This fundamental imbalance between supply and demand continues to drive the market dynamics.
How do Dutch property prices compare to Belgium and Germany?
Dutch property prices have risen much faster than in neighboring Belgium and Germany over the past decade.
Over the last 10 years, Dutch property prices increased by 48%, compared to just 6.8% in Belgium and 14.1% in Germany. This stark difference reflects the Netherlands' more acute housing shortage and stronger economic growth.
| Country | 10-Year Growth | Average Price 2025 | Price per m² | Affordability |
|---|---|---|---|---|
| Netherlands | +48% | €472,000 | €4,200 | Less affordable |
| Belgium | +6.8% | €280,000 | €2,500 | More affordable |
| Germany | +14.1% | €320,000 | €3,200 | More affordable |
The average property price in the Netherlands at €472,000 is significantly higher than in Belgium (approximately €280,000) and Germany (around €320,000). This price differential has widened considerably over the past decade.
Affordability in the Netherlands has become particularly challenging for single-income households. While Dutch couples can still generally afford to buy, singles face increasing difficulties, unlike in Belgium and Germany where single buyers have more options.
Despite higher prices, the Netherlands continues to attract international buyers due to its stable economy, excellent infrastructure, and high quality of life, maintaining demand pressure that neighboring countries don't experience to the same degree.
It's something we develop in our Netherlands property pack.
What risks could cause Dutch property prices to fall?
Several significant risks could potentially reverse the current upward trend in Dutch property prices.
An economic recession or significant slowdown would be the most immediate threat, potentially reducing household incomes and increasing unemployment from the current low of 3.5%. This would directly impact buying power and mortgage availability.
If inflation unexpectedly resurges, the ECB might be forced to raise interest rates again. A return to 5%+ mortgage rates would significantly reduce affordability and could trigger a price correction, particularly in the most expensive urban areas.
Policy shocks represent another risk category. Further restrictions on investors, changes to mortgage interest deductibility, or new property taxes could destabilize the market. The government is under pressure to address affordability, which could lead to market-cooling measures.
The affordability crisis itself poses a long-term risk. With prices increasingly disconnected from average incomes, particularly for single buyers, demand could eventually weaken as potential buyers are simply priced out, leading to a market correction.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The Dutch property market in June 2025 shows clear signs of continued growth, with prices rising 10.2% year-on-year and strong fundamentals supporting further increases. The combination of falling mortgage rates, persistent housing shortages, and robust economic conditions creates a favorable environment for continued price appreciation.
Based on current market dynamics, expert forecasts, and fundamental supply-demand imbalances, the answer to whether property prices are going up in the Netherlands is: Yes, a lot. The market is expected to see continued strong growth through 2025 before moderating to more sustainable levels in 2026 and beyond.
We made this infographic to show you how property prices in the Netherlands compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
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Sources
- Global Property Guide - Netherlands Property Market Analysis 2025
- ABN AMRO - House Price Forecasts 2025-2026
- Statistics Netherlands (CBS) - House Price Index Data
- Rabobank - Dutch Housing Market Quarterly Report
- De Nederlandsche Bank - Mortgage Lending Rates
- Mister Mortgage - Interest Rate Expectations 2025
- IamExpat - Dutch Housing Price Increases 2025
- NL Times - Dutch Property Price Statistics
- Investropa - Netherlands Real Estate Forecasts
- Roel Wonders - Current Dutch Mortgage Rates