The Housing Market in 2025: What Can You Expect?

The Dutch housing market is constantly evolving, and 2025 is no exception. After the developments in 2024, it is essential to understand what the coming year holds for you as a buyer or seller. Below, we outline the key expectations for the housing market in 2025.

Rising Housing Prices in 2025

According to recent forecasts, housing prices are expected to continue rising in 2025. ABN AMRO predicts a price increase of 7%, primarily driven by wage growth and a slight decline in mortgage interest rates. Rabobank projects an even higher increase of 10.7%, following an anticipated 9.1% rise in 2024. This sustained growth is attributed to the scarcity of homes on the market and ongoing income increases.

Mortgage Interest Rates in 2025

Mortgage interest rates remain a crucial factor for both buyers and sellers. While precise predictions are difficult, experts suggest that rates will either remain stable or slightly decrease in 2025. This trend could improve housing affordability and stimulate demand for mortgages.

Housing Shortage and New Construction

The housing shortage will remain a challenge in 2025. It is expected that the shortage will increase to nearly 420,000 homes, further driving up housing prices. Despite efforts to boost new construction, demand continues to outpace supply, contributing to persistent price increases.

Impact of Wage Growth

Rising wages play a significant role in the housing market. With an expected income increase of 5% in 2025, households will have more spending power. This could further boost demand for homes and provide additional momentum to rising housing prices.

Conclusion

Looking ahead to 2025, the Dutch housing market is expected to be characterized by continued price increases, stable or slightly declining mortgage interest rates, and a persistent housing shortage. These factors make it crucial to stay informed and make strategic decisions. At KIJCK. Makelaars, we are here to guide you through this dynamic market and help you make the best choices for your housing future.