The Dutch housing market is experiencing a notable shift as average home prices have seen a decrease in the first quarter of 2025. According to the latest quarterly figures released by the NVM, the average price paid for an existing owner-occupied home fell to 473,000 euros, down from 485,000 euros a quarter earlier. Despite this decline, house prices remain significantly higher than a year ago, reflecting a robust annual increase of 9.7 percent.
In total, 34,000 homes were sold in the past quarter, marking a significant uptick compared to the same period in previous years. This surge in transactions indicates a continued demand in the housing market, despite the recent price adjustments. However, the decrease in average prices was not uniform across all property types. Apartments saw an average price drop of 1.9 percent, while terraced houses and corner houses experienced declines of 1.6 percent and 1.8 percent, respectively.
Lana Goutsmits-Gerssen, chair of the NVM housing division, explained that these fluctuations are typical for the first quarter. “This is not unusual for a first quarter. In the past five years, we have recorded four quarters with slight price declines,” she noted. Goutsmits-Gerssen reassured that there is no immediate cause for alarm, suggesting that the current trends do not necessarily indicate a broader downturn in the market.
One notable trend contributing to the price dynamics is the influx of former rental properties into the sales market. According to a calculation by NVM's data subsidiary Brainbay, approximately 37,000 rental properties transitioned to the sales market last year. This shift is largely attributed to landlords struggling to manage their financial situations amid rising taxes and new rental laws, prompting them to sell their properties.
Goutsmits-Gerssen highlighted that this trend has particularly benefited first-time homebuyers. "Buyers are taking advantage of the influx of ex-rental properties, which has provided more options in the market," she stated. However, she cautioned that the situation for first-time renters is becoming increasingly difficult, as the availability of affordable rental properties continues to dwindle.
In terms of pricing, homes are still being sold above the asking price in many instances. On average, properties sold for 4.4 percent more than the asking price. Terraced houses were particularly competitive, fetching an average of 6.6 percent above their asking price, while detached houses typically sold for about 0.6 percent below the asking price. Remarkably, in over two-thirds of transactions, buyers paid more than the asking price, indicating a continued competitive market.
Additionally, the composition of the housing supply is changing. Currently, apartments make up 33 percent of the total housing supply, a significant increase from 20 percent five years ago. This shift is attributed to a focus on affordable and urban development, as well as a decrease in investor interest in rental complexes, leading to conversions of these projects into condominiums.
Despite the challenges, the new build sector has remained stable. In the first quarter, 6,740 new homes were sold, roughly the same number as during the same period last year. However, Goutsmits-Gerssen expressed concern about the long-term outlook for new construction. "Few building permits are being issued, and the supply of ground-bound homes continues to decline. This leads to an imbalance between supply, affordability, and buyer demand," she remarked.
The housing market in the four major cities has also reflected these trends. In these urban areas, two out of five homes sold were previously rental properties, further demonstrating the impact of the rental market on overall housing prices.
As the market continues to evolve, experts are closely monitoring these trends. The interplay between rental and sales markets, along with changing buyer preferences, will be crucial in shaping the future of the Dutch housing landscape.
