Residential Market

The Dutch residential market in international context

Regulation is also increasing in other European countries

Partly due to the housing shortage in the Netherlands, house prices have risen sharply in recent years: by 75% compared to 2015. In response to the pressure on the housing market, the Dutch government is trying to alleviate the pressure with an increasing number of measures. The housing shortage is not a uniquely Dutch phenomenon: other countries in Europe, including Germany and Ireland, struggle with similar problems. As a result, house prices in the European Union have also risen significantly, although less than in the Netherlands, on average by 43%.

Like the Netherlands, other governments in Europe are also implementing more measures to regulate the housing market. These measures are often focused on areas where the affordability of living is under pressure the most as a result of the rising house prices. For example, the German federated state of Berlin tried to freeze the rent level for five years, but this measure was voided by the German High Court2. Similar measures were proposed and implemented in other countries.

Examples of increasing regulation of the residential market in Europe

These measures show that Europe regulation is intensifying all over where scarcity is growing. On the one hand, this demonstrates the strong foundations of these markets. On the other hand, the residential market takes on an unpredictable character for investors as policy is modified continuously and one cannot anticipate future course changes. However, regulation also indirectly provides more security: restricting rental growth reduces the risk of issues due to affordability problems.

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Suitability of locations in the Netherlands for residential investment

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