17 strong forecasts for real estate in the Netherlands in 2025

Authored by the expert who managed and guided the team behind the Netherlands Property Pack

Everything you need to know before buying real estate is included in our The Netherlands Property Pack

What will happen in the Netherlands' real estate market? Will prices rise or fall? Is Amsterdam still a prime location for international investors? How is the Dutch government influencing real estate policies and taxes in 2025?

We’re frequently asked these questions because we’re deeply engaged in this market. Through our collaboration with notaries, real estate agents, and clients purchasing properties in the Netherlands, we’ve gathered firsthand insights.

That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive perspective on market predictions and forecasts.

Our aim is straightforward: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in the Netherlands. If you’d like to learn more about us, you can check our presentation page.

1) Property prices in the Netherlands will keep rising because of a continuous housing shortage

The Netherlands is seeing a steady rise in residential property prices due to a persistent housing shortage.

With the population growing, the demand for housing is increasing. By 2038, the number of households is expected to grow by 885,600, jumping from 8.4 million to 9.3 million. A large chunk of this growth, about 70%, will be from single-person households, which adds more pressure to the housing market.

Land for new construction is scarce, making it tough to build enough homes. The housing shortage has grown by 36,000 homes recently, reaching around 436,000 homes. Each year, only 67,000 new homes are built, while 85,000 new households are formed, creating a supply-demand imbalance that drives up property prices.

Urbanization is another factor, with more people moving to cities. The Randstad region, a major urban area, currently holds 42.6% of the Netherlands' population and is expected to rise to 44.2% by 2039. This urban concentration means more demand for housing in these areas, pushing prices higher.

Migration to cities is transforming major urban areas, intensifying the need for housing. As more people flock to these regions, the demand for homes increases, further driving up prices.

Overall, the combination of population growth, limited land for new construction, and urbanization is causing residential property prices to keep climbing in the Netherlands.

Sources: Bouwinvest Dutch Living Outlook 2025-2027, Savills News

2) Property yields in student cities like Leiden and Maastricht will increase as student numbers grow

In cities like Leiden and Maastricht, student numbers are climbing steadily.

Leiden University, with 27,713 students, and Maastricht University, hosting 18,000 students, are seeing more enrollments each year. This surge is fueling a booming demand for student housing.

The Netherlands is grappling with a severe student housing shortage. Last year, the supply of student rooms dropped by 5.2%, pushing rents up by 7.2%. In Maastricht, rental prices jumped by 13.3% in 2024.

Looking ahead, the Dutch Ministry of Education predicts an influx of 103,000 more students by 2024-25. This will further strain the already limited housing supply, likely boosting property yields in student hubs like Leiden and Maastricht.

Sources: EduRank, NL Times, The PIE News

We have made this infographic to give you a quick and clear snapshot of the property market in the Netherlands. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

3) More foreign buyers will invest in Dutch properties as a safe bet during global economic uncertainty

Foreign buyers are eyeing Dutch properties as a safe investment amid global economic uncertainty.

In cities like Amsterdam, property prices have seen a 5.24% increase in Q1 2024, signaling a stable and potentially growing market. This makes Dutch real estate appealing for those seeking reliable returns. The demand for rental properties is also climbing, with both local and international investors looking for steady rental income.

The Netherlands offers a stable political and economic environment, which is a big draw for foreign investors. The country is known for its strong legal protections for property owners, adding an extra layer of security for those investing in Dutch real estate.

Foreign investment is playing a significant role in the Dutch real estate market, as evidenced by the increasing demand for rental properties. This trend suggests that investors are confident in the long-term stability of the Dutch market.

With its reputation for stability and strong legal framework, the Netherlands is becoming a hotspot for those looking to invest in real estate. The country's economic resilience makes it an attractive option for foreign buyers.

Sources: Rabobank, IAmExpat, BNP Paribas, Global Property Guide

4) Rental yields in the Netherlands will rise as rental demand exceeds supply

Rental yields in the Netherlands are steadily increasing and show no signs of slowing down.

In cities like Amsterdam and The Hague, rental prices are climbing, making them attractive for property investors. For instance, a 1-bedroom apartment in Amsterdam offers a 5.26% average gross rental yield, while The Hague boasts a 7.21% yield. These figures highlight the potential for solid returns in these urban areas.

The Dutch population is growing rapidly, expected to hit 18 million by August 2024. This surge is outpacing the construction of new homes, creating a significant housing shortage. Currently, the Netherlands faces a shortfall of about 401,000 homes, a number that has been increasing for three years straight.

Even with efforts to boost housing construction, the pace isn't enough to satisfy demand. In 2023, more than 88,000 homes were added, but it still falls short of what's needed. The influx of expatriates and international students, particularly in cities like Amsterdam and The Hague, further fuels the demand for rental properties.

Sources: Global Property Guide, NL Times, NL Times

5) Rents in major Dutch cities will rise due to high demand and low supply

Rents in major Dutch cities have surged by 5.4% year-on-year in July 2024, the biggest jump since 1993.

Why the spike? Well, it's all about high demand and limited supply. More people are moving to the Netherlands, and urban areas are getting crowded. This means more households are looking for places to rent.

Adding to the mix, international students and expats are flocking to Dutch cities, making the rental market even more competitive. Everyone's vying for the same limited number of homes.

On the flip side, building new homes isn't happening fast enough. Construction costs are climbing, and there are hurdles like regulations and land use restrictions slowing things down.

The Dutch government has flagged a big issue: there's a housing shortage of about 401,000 dwellings. And if you're hoping for social housing, the wait is around seven years.

So, if you're thinking about renting in the Netherlands, be prepared for a tough market. High demand and slow supply growth are keeping rents on the rise.

Sources: Euronews, Bouwinvest, ICEF

6) Property prices in Eindhoven will rise as it strengthens its status as a top tech and innovation hub

In 2024, property prices in Eindhoven jumped by nearly 7%, outpacing the rest of Noord-Brabant.

As a tech and innovation powerhouse, Eindhoven is thriving, especially in the Brainport region. This area is a magnet for global tech talent, fueling the city's growth and innovation. The buzz around Eindhoven is palpable, with its reputation drawing in professionals from all over.

The High Tech Campus Eindhoven is a key player in this narrative. With 235 companies calling it home, it's on a mission to become a top global tech hub by 2030. The focus here is on cutting-edge digital technologies, tackling global challenges head-on. This ambition is not just talk; it's attracting major players like Philips, which in turn is driving up housing demand.

Expect property prices to keep climbing, though at a slower pace, with a projected increase of 3-4% in 2025. This is partly due to new construction projects that are in the pipeline, aiming to accommodate the influx of tech professionals.

Living in Eindhoven means being at the heart of innovation. The city's tech scene is not just about big names; it's a vibrant ecosystem where startups and established companies thrive together. This dynamic environment is a big draw for those looking to be part of something exciting.

For anyone considering a move, Eindhoven offers a unique blend of opportunity and growth. The city's commitment to innovation is evident in its ongoing development and the continuous influx of talent. It's a place where the future is being shaped, and property here is more than just a home; it's a stake in a thriving community.

Sources: Extate Housing, Mayors of Europe, Mayors of Europe

7) Rental yields in Amsterdam will dip slightly due to new rent control measures being implemented

In 2024, Amsterdam rolled out the Affordable Rent Act, introducing rent control for mid-range homes.

This act aims to make housing more affordable by capping rents based on quality indicators, ensuring that rents can't exceed a certain limit. This change is significant because it extends the Home Valuation System to more properties, making it mandatory for landlords to follow these new rent caps.

Historically, rent control policies have often led to reduced rental yields. For example, in San Francisco, similar measures resulted in a decline in the private rental sector's size, even though rents increased city-wide over time. This pattern suggests that while rent control can stabilize or reduce rent prices, it may also limit the returns landlords can expect, thereby affecting rental yields.

Real estate agencies in the Netherlands have predicted that these new regulations will lead to a decrease in rental yields. For instance, Anywr Netherlands reported that the legislation would increase the rent control limit, resulting in an average monthly rent reduction for many homes. This implies that landlords will face reduced profitability, which is a key factor in the expected decline in rental yields.

In Amsterdam, the introduction of rent control measures is expected to have a noticeable impact on the rental market. Landlords may find it challenging to maintain their current levels of profitability, as the new regulations limit the amount they can charge for rent.

As a potential property buyer, it's important to consider how these changes might affect your investment. With rental yields likely to decline, you may need to adjust your expectations for returns on rental properties in Amsterdam.

Sources: Housing Europe, UIPI, Anywr Group

8) Property values in Utrecht will rise significantly as it attracts young professionals by becoming a tech hub

Utrecht is becoming a hotspot for tech enthusiasts and property investors alike.

In 2023, the city saw a remarkable surge in property prices, with house values jumping by 14.4%. The average price for an existing home hit €466,890, and this upward trend is expected to continue. The demand is high, but the supply is tight, making it a competitive market for buyers.

Utrecht's transformation into a tech hub is a major driver of this demand. The city has been pouring resources into tech infrastructure, creating coworking spaces and tech facilities. This has attracted numerous startups and tech companies, which in turn is boosting the local economy and drawing in more professionals.

Government initiatives are also playing a big part. The Economic Board Utrecht is fostering collaboration between schools, businesses, and government bodies to strengthen the region's economy. This makes Utrecht a magnet for young professionals eager to dive into the tech sector.

The city's population is growing, especially in certain neighborhoods. This influx is largely due to Utrecht's top-notch education system and its reputation as a knowledge hub. As more young professionals move in, the demand for housing keeps climbing, pushing property values even higher.

For those considering buying property in Utrecht, it's worth noting that the city is not just about tech. It's a vibrant place with a rich cultural scene and a high quality of life, making it an attractive option for both living and investing.

Sources: Rabobank, UtrechtInc, Utrecht Monitor, InExpatFin, Provincie Utrecht

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.

9) Rents in tourist areas will drop as short-term rental rules tighten

In 2023 and 2024, tourist-heavy areas like Amsterdam saw a big change in the rental market due to stricter short-term rental rules.

Amsterdam made it mandatory for property owners to get a registration number before listing on platforms like Airbnb. This led to a massive 82% drop in Airbnb listings, from 16,648 in March 2023 to just 2,924 by October. With fewer short-term rentals available, the rental market dynamics shifted significantly.

As short-term rentals became less attractive, many landlords turned to long-term rentals. This wasn't just about following the rules; it was a smart move to ensure a steady income. As a result, the supply of long-term rentals increased, giving residents more choices and potentially lowering rental prices.

Strict enforcement, including fines for non-compliance, further discouraged short-term rentals. This wasn't just happening in Amsterdam; cities like Barcelona and Malaga also adopted similar measures, showing a wider trend to stabilize housing markets in tourist-heavy areas.

These changes mean that rents in tourist-heavy areas are likely to decline as short-term rental regulations become stricter. This shift is creating a more balanced rental market, benefiting long-term residents.

For potential property buyers, this trend offers a unique opportunity. With more long-term rental options and potentially lower prices, investing in these areas could be more appealing than ever before.

Sources: Holland Times, Drumelia, Short Term Rentalz

10) Demand for energy-efficient homes in the Netherlands will grow due to new environmental regulations

Energy costs in the Netherlands are climbing, making energy-efficient homes more appealing.

Homeowners are feeling the pinch as energy bills have jumped by about €120 annually due to rising network fees and variable tariffs. Looking ahead, by 2030, households could face an extra €400 yearly for gas, thanks to higher taxes and pricier "green gas" in the mix.

The Dutch government is stepping up with incentives to make energy-efficient homes more attractive. For instance, buyers can get discounts on mortgage interest rates for sustainable homes. Plus, there's a perk of borrowing up to 106% of the home's value if it has a higher energy label, making these homes a smart financial choice.

Climate change awareness is on the rise, especially after the Dutch Climate Act synced with the European Climate Law in 2023. This move aims for net-zero greenhouse gas emissions by 2050, pushing sustainable living into the spotlight. As a result, more buyers are leaning towards energy-efficient homes, which not only boost property value but also cut down on utility bills.

These new environmental regulations are expected to drive demand for energy-efficient homes. With the focus on sustainability, homebuyers are increasingly opting for properties that promise lower energy costs and a smaller carbon footprint.

Sources: Dutch Review, Mister Mortgage, European Commission

11) The rental market in the Netherlands will balance out due to stricter regulations

The Netherlands has been shaking up its rental market with stricter rental regulations to tackle rising prices.

In 2023 and 2024, rental prices shot up, with a 5.4% increase in July 2024. Social housing rents climbed even higher, making it tough for many to find affordable places. The government stepped in with the Affordable Rental Law, introducing a point system to cap rents. This move has been a game-changer, cutting excessive costs by €150 to €240 per month for tenants in the lower segment.

These regulations are not just about controlling prices; they aim to make housing more accessible for everyone. The Indefinite Rental Contracts Law is another key measure, giving tenants more security. Now, landlords need a legal reason to end a rental agreement, which means tenants enjoy greater stability and fewer unexpected moves.

Over 160,000 homes in the private sector are now under regulated rent, which is a big deal. This inclusion helps keep rents from skyrocketing, contributing to a more balanced rental market. It's a win-win for both tenants and landlords, as it promotes long-term tenancies and reduces turnover.

These changes are reshaping the rental landscape, making it more tenant-friendly. The focus is on creating a stable environment where people can settle down without the fear of sudden rent hikes. It's all about finding that sweet spot where affordability meets stability.

Sources: Rental Prices in the Netherlands, Less Rental Income as of July 1, 2024, Indefinite Rental Contracts Law

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12) Property prices in the Netherlands will stabilize as the government works to balance supply and demand

The Dutch government is actively working to stabilize property prices by balancing supply and demand in the housing market.

One major initiative is the plan to add over 900,000 new homes by 2030, which includes both new builds and renovations. This not only boosts housing supply but also helps reduce CO2 emissions, making it a win-win for the environment. In 2023, about 73,000 new homes were built, showing a strong effort to tackle the housing shortage. Even though there might be fewer new builds in 2024, projects like the sustainable development in Oostenburg, Amsterdam, highlight the ongoing commitment to increasing housing availability.

Changes in zoning laws are also on the table, aiming to allow more flexibility in building. This could further enhance the supply of new homes, making it easier for developers to meet demand. The government is also investing in infrastructure to support these new housing developments, which is crucial for stabilizing property prices. This investment, along with more rental properties, gives potential buyers and renters more options, contributing to a more balanced market.

The slowdown in property price growth observed in 2024, with a more moderate increase compared to previous years, reflects these efforts to stabilize the market. The Dutch government’s strategy is not just about building more homes; it’s about creating a sustainable and balanced housing market. This approach is expected to stabilize property prices over time, making it a promising time for potential buyers to consider investing in the Netherlands.

Sources: Building Radar, IAmExpat, Global Property Guide

13) More people choosing co-living will change the rental market in the Netherlands

The rental market in the Netherlands is seeing a big shift as more people turn to co-living arrangements.

With rental prices in major Dutch cities on the rise, mid-market rentals are expected to jump by 7.7% in 2025. This increase is making co-living spaces, which are often more affordable, a popular choice for many.

Affordable housing is in high demand, yet scarce, with less than half of homes in two-thirds of municipalities being "affordable." First-time buyers are snapping up over 60% of these homes, leaving others to explore co-living as a viable option.

Young professionals and expatriates are particularly drawn to co-living for its social perks. They value the community building and social connections that these spaces offer, making them an attractive alternative to traditional rentals.

Co-living companies are expanding rapidly in the Netherlands. For instance, Habyt has tripled its units within a year and operates at full capacity in cities like Amsterdam, Rotterdam, and The Hague, highlighting the growing demand.

Media coverage often highlights the benefits of co-living, such as cost-effectiveness and sustainability, which further fuels interest. This trend is reshaping the rental landscape, with more people opting for these shared living spaces.

Sources: NL Times, NL Times, The City Lifer, Habyt

14) Demand for tiny homes in the Netherlands will grow as people look for affordable and sustainable living options

Property prices in the Netherlands have soared, especially in cities like Amsterdam.

As a result, many are turning to tiny homes as a more affordable option. These compact living spaces are not just budget-friendly; they also fit well with the growing trend of sustainable living. The Dutch government is actively supporting this shift by offering subsidies and grants to promote energy efficiency, making tiny homes even more appealing.

Programs like the Investeringssubsidie Duurzame Energie (ISDE) are helping homeowners make eco-friendly upgrades. This aligns perfectly with the eco-conscious nature of tiny homes, which are designed to minimize environmental impact. The Dutch are increasingly aware of their carbon footprint, and tiny homes offer a practical solution.

In cities like Alkmaar and Almere, successful tiny home projects have shown that this lifestyle is not only feasible but also attractive. These projects have received significant media attention, further boosting their popularity. For those who care about the environment, tiny homes present a cost-effective way to live sustainably.

With the Dutch government’s support and the public’s growing environmental awareness, tiny homes are set to become even more popular. They offer a unique blend of affordability and sustainability that is hard to resist. As more people look for ways to reduce their carbon footprint, tiny homes provide a compelling option.

Sources: NL Times, Expatshaarlem, Marjolein in het Klein

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Netherlands. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.

15) Demand for home office spaces in Dutch properties will grow as remote work becomes more common

Remote work is reshaping how the Dutch view their homes.

In 2023 and 2024, real estate listings in the Netherlands began to prominently feature dedicated home office spaces. This is especially true for luxury properties, where having a spacious office area is now a major selling point. Buyers are increasingly looking for homes that can accommodate their work-from-home needs.

With more people working from home, there's been a noticeable increase in the sales of home office furniture and equipment. People are investing in ergonomic and multifunctional furniture to create comfortable and efficient workspaces at home. This trend reflects a shift in customer preferences as they adapt to new work environments.

Surveys from 2023 revealed that a large number of Dutch employees prefer remote work, with the Netherlands leading the EU in work-from-home rates. This preference has pushed companies to adopt hybrid work models, making home office spaces a crucial feature in residential properties.

As the demand for home office spaces grows, the market for related furniture and equipment is expected to continue its steady growth. This change is driven by the need for comfortable and efficient workspaces at home, as more people embrace remote work.

In the Netherlands, the rise of remote work is not just a trend but a significant shift in lifestyle, influencing how people choose their homes and what features they prioritize. Home office spaces are becoming essential in Dutch properties, reflecting the changing work culture.

Sources: NL Times, Statista, Le Figaro Properties

16) Demand for modern urban apartments will rise as young professionals move to tech hubs

Young professionals are flocking to tech hubs in the Netherlands, driven by a booming tech job market.

Amsterdam and Eindhoven are at the heart of this trend, becoming major tech hotspots with numerous job opportunities in AI, machine learning, and cloud computing. These cities are buzzing with innovation, making them magnets for talent. As more young professionals move in, the demand for modern, urban apartments is on the rise. They are particularly interested in places that offer smart home technologies and modern amenities, reflecting their tech-savvy lifestyles.

The Netherlands is already ahead in smart city initiatives, with projects like the Brainport Smart District showcasing innovative living solutions. This makes urban living even more appealing to those in the tech industry. The lifestyle in these cities is another big draw. The Netherlands offers a high quality of life and an excellent work-life balance, which is crucial for young professionals looking to thrive both personally and professionally.

Moreover, the country is known for its welcoming environment for international talent, making it easier for young professionals from around the world to settle in. This influx is not just about jobs; it's about a lifestyle that combines work and leisure seamlessly. The urban centers in the Netherlands are perfectly positioned to cater to this new wave of tech-savvy residents.

As the tech industry continues to grow, the demand for modern apartments in these urban areas will only increase. Young professionals are looking for spaces that match their dynamic lifestyles, and the Netherlands is ready to meet this demand. The combination of a thriving tech scene and a high quality of life makes these cities irresistible to the new generation of tech workers.

Sources: Nucamp, Dezeen, People20

17) Demand for properties in Groningen will drop due to concerns over seismic activity from gas extraction

Properties in Groningen are seeing a drop in demand due to ongoing seismic activity from gas extraction.

Since the late 1980s, Groningen has been rattled by over 1,000 earthquakes, with the most intense reaching 3.6 on the Richter scale. This has understandably made potential buyers cautious about investing in the area. The frequency and intensity of these quakes have increased, making the situation more concerning for residents and investors alike.

The impact on property values has been significant. In the northern Netherlands, house prices have been directly affected by these seismic events, with declines ranging from 0.7% to 20%. This drop in value makes the region less appealing for those looking to buy property, as the risk of further devaluation looms.

Media coverage has played a role in amplifying these concerns. Stories about the demolition of buildings and the displacement of residents due to seismic activity have been widely reported. This has led to a heightened sense of unease among potential buyers, who are increasingly wary of the risks involved.

Surveys have shown that residents are worried about safety and the future of their property investments. This sentiment has contributed to a noticeable decrease in buyer interest, as people are hesitant to invest in an area with such uncertainties.

Sources: The Structural Engineer, Beeliners Blog, RUG Portal

While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.