Urban housing markets showing signs of recovery

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ING Bank’s Economic Bureau reports that the four big cities are the exception to the nation-wide trend of continuously falling housing prices.

Housing has become 9.1 percent cheaper on average since prices reached their peak in the summer of 2008. There are as yet no signs of a nation-wide recovery, but prices in 20 of the 25 major cities have bottomed out. Housing prices in Rotterdam have increased by seven percent after hitting their lowest level in November 2010.

The urban population of the Netherlands is growing at a faster rate than elsewhere in the county with obvious consequences for the housing market. Price differences between the major cities and the rest of the Netherlands are expected to increase further in the coming years.

In Amsterdam prices levelled out in August 2009 and have since gone up by 3.2 percent. Price increases in The Hague and Utrecht have been substantially lower.

On a national level, the housing market is far from recovered. In September of this year prices decreased by 2.9 percent compared to the same period in 2010. The ING Economic Bureau expects housing prices will fall by 2.5 percent in 2012.

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