Amsterdam Housing Market 2025: Record Price Hike & Shortage

Amsterdam Housing Market 2025: Property Prices Continue Upward Trend with Nearly 10% Rise in May

Amsterdam, Netherlands – The Dutch housing market, particularly in Amsterdam, continues to defy economic uncertainties. In May 2025, house prices in the Netherlands recorded an increase of nearly 10% compared to the previous year, marking a consistent rise of 0.6% from April. These figures, published by the Centraal Bureau voor de Statistiek (CBS) and the Kadaster (land registry), reveal a persistent upward trend.

Average Price Nears Record Highs: Almost €472,000

The rise in property prices has pushed the average sale price of a house or apartment to a record level: just under €472,000. It's important to note that these CBS and Kadaster figures are based on completed transactions and typically lag behind the more immediate statistics from the NVM (Dutch Association of Real Estate Brokers and Appraisers). For potential buyers and investors in Amsterdam, this trend is crucial.

Housing Shortage: The Main Driver of Amsterdam's Price Surge

Despite a slowdown in Dutch economic growth to 0.1% in the first quarter of this year, the continuous rise in housing prices in Amsterdam and the Netherlands is "striking," according to Matthieu Zuidema, Kadaster housing expert, as quoted by Nu.nl.

Nic Vrieselaar, housing market economist at Rabobank, highlights a key point for the Amsterdam market: the increasing difficulty of buying a home. He estimates that "households earning 1.5 times the average wage are being priced out," and that "soon you'll need double the average income, plus a contribution from wealthy parents" to afford homeownership. This situation is exacerbated by high demand and a chronic shortage of new housing construction.

Failure to Meet Construction Targets and Consequences for the Amsterdam Market

The Dutch government had set an ambitious target of building 100,000 new homes per year but has consistently fallen far short of this goal since its introduction approximately eight years ago. This construction deficit is a major cause of the housing crisis in Amsterdam.

In May 2025, nearly 20,000 homes changed hands, an increase of 11.5% compared to May of last year. In the first five months of this year, 90,000 houses and apartments were sold—a significant rise of 16% compared to the same period in 2023.

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Impact of Rent Regulations: Shrinking Supply for Sale

A notable phenomenon in the Amsterdam market is the sale of many former rental properties in major cities. Owners, eager to avoid increasing rent control restrictions (the "Wet betaalbare huur" - Affordable Rent Act, and the "Woningwaarderingsstelsel" - Housing Valuation System), prefer to sell their properties as soon as they become vacant.

According to Nic Vrieselaar, this wave of rental property sales will lead to an even more drastic reduction in supply once it's over. "If we are talking about the availability of owner-occupied homes for