After almost a decade-long house price boom, the Netherlands’ housing market is now rapidly cooling, amidst falling demand caused by rising interest rates and aggravated by sluggish economic growth.

In Amsterdam, the capital, the price of existing homes fell by 5.7% in Q3 2023 from a year earlier (-8.1% inflation-adjusted), in sharp contrast to the strong y-o-y growth of 8.5% seen in Q3 2022, according to Statistics Netherland (CBS). Nationally, house prices dropped 4.6% (-7.0% inflation-adjusted) over the same period – the third consecutive quarter of y-o-y decline and the biggest fall since Q3 2013.

Nationally, by property type, in Q3 2023, apartment prices fell by 4.5% (-6.9% inflation-adjusted) y-o-y in Q3 2023, in sharp contrast to the prior year’s 9.7% increase. Terraced house prices were down by 4.2% (-6.6% inflation-adjusted), following a huge y-o-y increase of 11.6% in Q3 2022. Detached house prices fell by 5.0% (-7.4% inflation-adjusted) during the year to Q3 2023 – after increasing strongly by 13.7% in the previous year. Semi-detached house prices dropped by 4.9% (-7.3% inflation-adjusted).