The Dutch real estate market could get cold: that's why!
One of the most advanced nations in the world, open and with one of the strongest GDP in absolute terms, the Netherlands seems to be experiencing some difficulties in the real estate market. Van Gogh's homeland seems to live in one of his most famous paintings: starry night, devoid of form and above all confusing.
After months of overheating, in fact, the real estate of the Netherlands seems to be frozen, hibernated by the icy wind of the crisis. According to statistical data, prices continue to rise, risking to reach the historic ceiling. But the problem is another. Parallel to this increase, some very serious downturns on the demand side have been found. Less and less houses are bought in this country. Suffice it to say that in the last quarter of last year, around 8% of homes were sold less than in 2017 (at truly exorbitant prices).
In some areas, as in the capital Amsterdam, the number of purchase and sale contracts has almost been canceled. In fact, many investors are the ones who, forced by this situation so inconvenient, prefer to sign a lease.
More and more people are unable to bear these expenses and opt for alternative solutions. To complicate this situation, there is also the presence of projects in the pipeline for the construction of about 80,000 new homes in 2019, which, probably, will not be immediately sold. The properties remained on the market for about 25 days in 2017, and over a period of 28 in 2018. Today, however, a property remains in the real estate market for more than a month, sometimes without having particular interest on the demand side.
As for the segmentation of investors, local buyers are less and less. Perhaps this is the only positive element for the Dutch economy, as the contribution of foreign capital, especially from wealthy citizens, causes a more extensive opening towards the international market.
One of the few strong points of this country is given by a still strong and solid economy and by the great sensitivity towards sustainability, also in the real estate field.
We have repeatedly found Holland at the top of the '' green and smart '' charts. For example, the boom in tiny houses has taken root in this land, which has managed to combine the concept of small houses with that of functionality in relation to environmental protection.
Probably such a dramatic situation, if it occurred in another nation, would have caused much more critical and irreversible damage. Even in this circumstance, the Netherlands manages to juggle well, thanks to a truly enviable governmental, economic and social system.
It is therefore hoped that, after a few months, the Netherlands can recover the title of economic power, overcoming this critical and worrying phase.
After months of overheating, in fact, the real estate of the Netherlands seems to be frozen, hibernated by the icy wind of the crisis. According to statistical data, prices continue to rise, risking to reach the historic ceiling. But the problem is another. Parallel to this increase, some very serious downturns on the demand side have been found. Less and less houses are bought in this country. Suffice it to say that in the last quarter of last year, around 8% of homes were sold less than in 2017 (at truly exorbitant prices).
In some areas, as in the capital Amsterdam, the number of purchase and sale contracts has almost been canceled. In fact, many investors are the ones who, forced by this situation so inconvenient, prefer to sign a lease.
More and more people are unable to bear these expenses and opt for alternative solutions. To complicate this situation, there is also the presence of projects in the pipeline for the construction of about 80,000 new homes in 2019, which, probably, will not be immediately sold. The properties remained on the market for about 25 days in 2017, and over a period of 28 in 2018. Today, however, a property remains in the real estate market for more than a month, sometimes without having particular interest on the demand side.
As for the segmentation of investors, local buyers are less and less. Perhaps this is the only positive element for the Dutch economy, as the contribution of foreign capital, especially from wealthy citizens, causes a more extensive opening towards the international market.
One of the few strong points of this country is given by a still strong and solid economy and by the great sensitivity towards sustainability, also in the real estate field.
We have repeatedly found Holland at the top of the '' green and smart '' charts. For example, the boom in tiny houses has taken root in this land, which has managed to combine the concept of small houses with that of functionality in relation to environmental protection.
Probably such a dramatic situation, if it occurred in another nation, would have caused much more critical and irreversible damage. Even in this circumstance, the Netherlands manages to juggle well, thanks to a truly enviable governmental, economic and social system.
It is therefore hoped that, after a few months, the Netherlands can recover the title of economic power, overcoming this critical and worrying phase.
