5 points of view on the real estate market in 2022 and beyond


5 points of view on the real estate market in 2022 and beyond

It’s safe to say that the housing market in The Netherlands is a dynamic market. Rising interest rates, inflation and geopolitical tensions are putting pressure on the market, but can also offer opportunities for different involved parties. After the relatively quiet summer period and with ‘Prince’s day’ in The Hague coming up, with this blog we dive into the latest developments on the real estate market from five different perspectives.


The real estate market is and remains promising for sellers. A new ‘balance’ seems to have been found between supply and demand, with demand still holding sway. Also, buying and making existing properties more sustainable becomes more attractive over buying a newly built home. This is partly due to the anticipated shortages and delays in housing construction as well as the numerous opportunities for subsidies and financing for making existing homes more sustainable. Despite the uncertainty surrounding mortgage interest rates, some house seekers will seize the opportunity to buy a home right now.


For house hunters, the housing market looks hopeful at the moment and for the near future. Where previously the opportunity of viewing a property often seemed impossible, house hunters are now getting a little more space to breathe. There is still ample demand and little supply, but house seekers seem to be taking a wait-and-see attitude en masse. So the chances of finding and successfully purchasing a property are likely to increase in the coming months.


‘The time is now’ to rent out properties. Especially in big cities like Amsterdam and The Hague, demand for rental properties continues to grow exponentially. (International) students as well as expats and young professionals are massively looking for a rental property in a favourable location. Both within the city center and on the outskirts, there is high demand for rental accommodation. Research therefore shows that potential tenants are very willing to pay more for a property that meets their search profile.


Whereas interest rates were still around 1.5% for a 100% market value loan at the beginning of this year, they are now around 4%. This rise in interest rates affects maximum borrowing capacity, although this impact is often overestimated in news reports. Mortgage rates are rising, but are still far from reaching historically high rates. Furthermore, there is currently uncertainty in the financial market due to ECB rate hikes, interest rate hikes in America (the Fed) and the war in Ukraine. This is causing banks to apply larger margins and allowed interest rates to rise fast. The biggest consequence of these developments and increases was that the ”rollover market”, customers switching their mortgages to a new lower interest rate, almost disappeared altogether. Banks are expected to continue to provide plenty of mortgages and the market values of homes will further increase or ”stabilize”. The changing housing market and the wide range of subsidies available for making existing homes more sustainable are also shifting the options that are financially attractive to home seekers and owners. Your financial adviser can best advise you on your chances on the housing market.


Is the housing market at a tipping point? That is the question! The signs are certainly there: with interest rates still rising, high inflation and the war in Ukraine, among other things, buyers are taking a wait-and-see approach and rental properties are highly desirable. The average number of viewings is declining and we ended a very quiet summer period. Unfortunately, we too do not have a crystal ball and cannot predict the future.

If interest rates rise any further and the average disposable income falls back, buyers may become even more cautious and want to bid more defensively. This will put pressure on price levels. On the other hand, there is still a sizable shortage of available homes, so the gap continues. In practice, we find that well highlighted homes (both single-family houses and apartments) are still in high demand and are still selling above asking price.

We look forward to tomorrow, september 20th, where the government will present its plans during ‘Prince’s Day’. The housing market will certainly be addressed in these. Would you like to know more about current developments in the market and would you like to explore real estate in Amsterdam or The Hague? Our real estate agents will be happy to discuss this with you.