International interest grows in the netherlands

Photo: Selma90

International interest is growing in the Netherlands' housing market.

"More and more international buyers and expats are interested in the beautiful country houses and castles in the Netherlands," Jan Wassink of R365 Christie’s International Realty tells The New York Times.

Indeed, the Netherlands' market has been hit by the recession like many other countries, with prices for properties having fallen 20 per cent from their peak to their post-crash low. Even with price growth now at a steady 3 per cent a year, prices are still around 15 per cent below their pre-crisis levels, attracing overseas investors seeking affordable opportunities.

"Prices are relatively cheap compared to main cities in the UK, France and Germany," notes Maarten Oortman Gerlings, the owner of Villacus Real Estate.

International buyers originate from Australia, Asia, South American, the Middle East, the US and South Africa, he adds, while expats tend to gravitate towards the Hague, the international political and educational hub of the country. Wealthy buyers also look for second homes near the lakes and coastal areas of South Holland, North Holland, Friesland and the Wadden Sea Isands.

The comments from agents follow Rabobank's latest report, which says the Netherlands has enjoyed a "strong" first half of 2015. Indeed, the market is expected to continue to pick up through the rest of the year and into 2016.

"This year between 170,000 and 185,000 homes are expected to Change ownership. In 2016 the growth in the number of house sales will stabilise, with between 170,000 and 190,000 homes expected to be sold," says the quarterly report.

"The stronger economic growth is important for the housing market," says housing market economist Pieter van Dalen of Rabobank. "Rising employment generates higher average disposable income. Together with the low mortgage interest rates and high levels of confidence, things look promising for further growth."
 
The growth in the housing market is not restricted to the Randstad, adds Rabobank. Every province recorded a rise in sales in the first half of this year compared to 2014, causing reduced supply everywhere in the housing market and rising prices in every province.

"Prices are rising particularly fast at present in the major cities," says Van Dalen. "House prices in Amsterdam in the second quarter of 2015 were on average 8% higher than a year ago. But since prices in the city are still 6 per cent lower than in 2008 and mortgage rates are low, even Amsterdam is more affordable than before the crisis."