Property prices cooling down? Still invest in real estate?

Property prices cooling down? Still invest in real estate?

Last updated on
June 28, 2022

Did you read it too? Property prices in the Netherlands in the first quarter of 2022 are a bit lower (2.1%) compared to the end of last year*. Surprising? Yes, especially when we have been reading reports of skyrocketing growth for years 🚀. 

🕵️‍♀️ What’s up with that?

First, some perspective: The drop is quite small at 2.1%; and if you compare it with a year earlier, prices are still 13.7% higher. So what could be the explanation:

🔮 What does the future hold?

Nobody can predict the future, duh 😏! This said, most real estate experts such as NVM and ABN Amro** continue to predict that house prices will rise because the demand for houses is still much greater than the supply. This gap is long-term and structural, and will probably not be closed any time soon, but the rise in mortgage interest rates may make growth a little bit more modest. The latter is a good thing: better to have sustainable growth than overheated growth.

ABN Amro predicts a 12.5% increase for 2022 and a 5% increase for 2023.

🎢 Why still invest in real estate in those volatile times:

In today’s uncertain times with high inflation, falling stock markets and 0% interest on your savings account, it is hard to find the right spot for your money. Real estate has historically proven to be a great alternative in such periods. 

With Brxs, we make it very easy to invest in specific real estate starting at €100 and you earn interest through rental income (paid quarterly) and potential appreciation in the longer term 💰.

🏡 Interested to have a try?

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Did you read it too? Property prices in the Netherlands in the first quarter of 2022 are a bit lower (2.1%) compared to the end of last year*. Surprising? Yes, especially when we have been reading reports of skyrocketing growth for years 🚀.