House prices to keep rising for the next two years despite larger supply

According to new research from Rabobank, the Dutch housing market remains resilient despite higher interest rates and economic uncertainty. Property prices are projected to increase by 4.2 percent this year and continue rising by 3.2 percent into 2027. While a surge in investors selling rental properties has expanded supply, it remains insufficient to meet high demand, and new construction faces setbacks due to nitrogen regulations and power grid constraints.

Despite rising prices, property sales remain active, largely supported by strong wage growth among many households. However, affordability persists as a significant challenge, particularly for middle-income earners. The disparity in regional accessibility is stark, with homes in major urban areas like Amsterdam being significantly less affordable for average-income families compared to those in more peripheral regions. While total transaction volumes are expected to decline in the coming years, the persistent lack of housing stock ensures that price pressure will continue across the Netherlands.