nu

ABN AMRO also expects the housing market to cool down next year

ABN AMRO also expects the housing market to cool down next year

ABN AMRO expects the Dutch housing market to cool next year as mortgage interest rates remain high, leading to a downward revision in price and transaction growth forecasts. While rural provinces are currently seeing strong price increases, the growth rate in urban areas like Amsterdam is decelerating, signaling a broader market trend.

ABN AMRO forecasts a cooling of the Dutch housing market in the coming year, driven primarily by sustained high mortgage interest rates and anticipated European Central Bank policy adjustments. While the bank raised its annual price growth expectation for this year from 3 percent to 3.8 percent due to strong performance in the first half, it has lowered growth forecasts for 2027 from 4 percent to 2.5 percent. Additionally, housing transaction volume projections for 2027 have been revised downward to a 5.5 percent decline.Regional data indicates significant disparities, with rural areas like Groningen, Drenthe, and Gelderland experiencing substantial price increases that currently bolster the national average. Conversely, growth in major urban centers is decelerating, with Amsterdam serving as a notable indicator. In the capital, year-over-year price growth reached only 0.8 percent in the second quarter, significantly trailing the national average. ABN AMRO suggests that the trend observed in Amsterdam may eventually reflect across other regions of the Netherlands as the market matures.

Based on reporting by nu. Translated and condensed by LocalHeadlines.

Related articles

Alderman concerned about rising interest rates, but major investments continue: "Though later or more modest"

Alderman concerned about rising interest rates, but major investments continue: "Though later or more modest"

Amsterdam's finance alderman Hendrik Jan Biemond intends to continue planned city investments but indicates they may be executed more soberly or delayed due to rising interest rates. The city will implement cost-saving measures, including the reduction of 2,500 municipal staff positions, to manage a projected increase in debt and interest expenses.

Nvidia eyes Arm Holdings CEO Rene Haas as successor to Jensen Huang

Nvidia eyes Arm Holdings CEO Rene Haas as successor to Jensen Huang

Nvidia is scouting Arm Holdings CEO Rene Haas as a potential replacement for co-founder Jensen Huang, who stepped down amid personal scandals. The leadership vacancy has created significant market uncertainty, impacting major tech companies listed on the Amsterdam stock exchange.

Amsterdam buys NS land: construction of 2,100 homes in Amstelvoorde can proceed

Amsterdam buys NS land: construction of 2,100 homes in Amstelvoorde can proceed

Amsterdam has purchased land from the Dutch Railways to develop the new neighborhood of Amstelvoorde, which will feature 2100 homes and various public facilities. This acquisition allows the city to expedite construction and maintain better control over the development process, with the first permanent housing units slated for completion in 2028.

KLM files criminal complaint against former CEO Camiel Eurlings over burning power bank

KLM files criminal complaint against former CEO Camiel Eurlings over burning power bank

KLM has filed a police report against former CEO Camiel Eurlings after a power bank belonging to him caught fire on a flight from Amsterdam to Curaçao. The incident forced the aircraft to return to Schiphol Airport, as the airline maintains that such safety violations jeopardize the well-being of passengers and crew.

Amsterdam wants to increase tourist tax: what are the consequences and is it wise?

Amsterdam wants to increase tourist tax: what are the consequences and is it wise?

The Amsterdam city council is considering raising its tourist tax to 20 percent by 2031 to curb the city's ongoing overtourism issues and improve local livability. The proposal has drawn criticism from industry experts and political opponents, who argue that the tax will harm businesses and fail to effectively manage visitor numbers.