Rising house prices
It is expected that in 2022 residential real estate prices will grow by 12,5%, and in 2023 by another 5%. The rise in prices continued, but its pace slowed down. For comparison: in 2021, house prices rose by 15,2%.
The main reason for this is high inflation. Prices for goods and services are rising faster than people's incomes. A significant part of potential homebuyers stopped looking for it, desperate to find an affordable option. The war in Ukraine also worsens the expectations of the Dutch regarding the possibility of acquiring housing. The decrease in the number of potential buyers puts pressure on the real estate market, slowing down price growth.
Rising interest rates on mortgages
Mortgage rates are at historic lows. However, in January 2022, they increased on ten-year loan agreements by 4 basis points and reached 1,77% per annum.
This will reduce the activity of potential buyers, since not all of them will be able to pay the increased amounts. In addition, the credit policy of banks has also tightened. At the same level of income, borrowers will be able to borrow a smaller amount. The war in Ukraine is also putting pressure on the banking sector: bankers' expectations are deteriorating, interest rates on loans are increasing.
The importance of the energy factor when buying a home
The ability of the old housing stock to keep warm does not suit modern buyers. This is due to the rise in prices for energy resources.
The global rise in prices for gas, oil products and electricity is due to the activities of OPEC, increased demand, political and military instability in the world. The homebuyer wants to be sure that he will be able to pay for his heating. The factor of heat preservation by housing becomes extremely important. Houses and apartments of old construction do not provide the required energy efficiency. At the same time, the number of new houses built that meet modern energy efficiency requirements is declining due to the high cost of land, the lack of building materials and builders.
When choosing a residential property for purchase, we recommend using the Nalog.nl website service for checking housing. Basic information about the object can be obtained for free, extended information - for little money. You can go to the housing check service at this link.
Publication Date: 26.04.2022
