The Dutch housing market is cooling down: Time to invest?

Housing market
Co-Founder of BRXS
Filip Nuytemans
Co-Founder of BRXS
December 8, 2022

Lately you can't check the news anymore without reading something about skyrocketing inflation, the looming energy crisis and all their effects on the housing market. So many negative headlines with sometimes little context. Despite all of this we, at BRXS, are actually more optimistic than ever and are starting to see a lot more opportunities today compared to last year. We want to do it differently and give you the context that is too often missing and we want to share what is going on and how we see it with you more frequently. 

What is happening:

The third quarter of 2022 showed an annual housing price increase of 2%, but did see a decline of 5.8% compared to the second quarter of 2022 (Source: NVM). So the higher interest rates, energy crisis and inflation are reducing demand for buying homes. In itself, not a bad thing that some "normalisation" is occurring, after the overheated housing market of the past 2 years. 

What does the future hold:

Depending on how mortgage rates and purchasing power continue to evolve over the next few months, it is likely that the demand for housing will stabilise or slightly decline. The craziness of the last few years is most likely over. After all, under the current conditions, one can borrow less than before.

But to get the full picture, we also have to take into consideration the availability of homes. And this housing supply remains very limited in the Netherlands: there is still a current shortage of more than 300,000 homes. To close this shortage, the Ministry of the Interior is trying to raise the construction rate from 70,000 new homes to 100,000 new homes per year. Even if this is achieved (which will not be easy), the housing shortage will not be eliminated before 2030. 

Bringing the supply and demand pictures together, the real estate experts of the Dutch banks have a mixed point of view: some are assuming a slight growth in home prices for 2023 (Rabobank at 3%) while others assume a slight decline (ABN Amro at -2.5%)

How does BRXS look at it:

First of all, the social aspect is very important to us. We founded BRXS to make real estate investing more accessible and we think it's important that everyone gets a fair chance in the housing market. So the fact that there is a bit of a cooling off in the housing market is a good thing for all of us. 

Our starting principle is to not compete with first-time buyers and families looking for their homes. We focus specifically on existing rental properties and do not withdraw properties from the owner segment to the rental segment.

Within this rental property segment, we are actually getting more excited as we see a lot of opportunities emerging, aligned with our real estate investing strategy:

Our latest property in Delft is a good example of the above and we are working hard on bringing more such strong opportunities to the platform in the coming weeks. As always if you have any questions, thoughts or just want to say “Hi”, you can reply to this email. 

Excited to be investing alongside you,

Filip

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Want to get in touch?