After years of sharp price fluctuations, the housing market seems to be rebalancing in the first quarter of 2025. In this article, we dive into recent figures, trends by region and the factors currently affecting house prices.
Slight rise after stable 2024
According to the latest figures from CBS and the Land Registry, house prices in Q1 2025 rose by an average of 1.2% compared to the previous quarter, and 3.4% compared to a year earlier. With this, the market seems to be recovering cautiously after a period of relative stagnation in 2023 and early 2024.
Regional disparities: Cities gain ground again
Price increases were not evenly distributed across the region:
Randstad: Amsterdam, Utrecht and Rotterdam saw an average increase of 2.1%. Especially popular neighbourhoods with a lot of renovation potential attracted buyers.
North Netherlands: Here, growth was limited to around 0.5%, mainly due to limited demand and a wider housing supply.
South Limburg and Zeeland: Notable risers with +1.8%, partly due to interest from buyers from Belgium and Germany.
Influence of interest rates and financing
Mortgage rates fell slightly in Q1, averaging 4.1% for a 10-year fixed rate (was 4.4% at the end of 2024). This has slightly improved sentiment among first-time buyers and those moving on, although borrowing capacity remains limited by high housing costs. At the same time, the effects of the Affordable Rent Act, which was introduced on 1 July 2024, are starting to be felt. Investors have become more cautious in buying up homes, which has eased competition in the owner-occupied market somewhat.
New construction lags behind - tightness remains high
Although housing demand is picking up, supply remains tight. Delays in permitting, high construction costs and nitrogen issues mean that new construction production in Q1 was again below the desired level. This contributes to price pressure in urban areas in particular.
What can we expect for Q2 and beyond?
House prices are expected to continue to rise steadily through 2025, unless unexpected economic headwinds emerge. The combination of low construction activity, rising demand, and increased confidence among buyers is setting the market in motion. But a new ‘price bubble’ does not seem to be on the cards for now.
