Why Netherlands Property Prices Keep Rising: Understanding the Housing Market in 2026

When Will the Netherlands Housing Bubble Burst?

It's a hot, evergreen topic: the Netherlands housing bubble is about to burst any moment now.

After all:

Prices in central Amsterdam have long exceeded €10,000 per square meter. The market must be overheated!
Prices in the Netherlands grow on average by 7% annually—unheard of!
Authorities have pressured rental property owners, who started selling their properties in bulk. Mass sales signal a bubble burst! Waiting for the crash!

2025 update: Still hasn't burst.

Rabobank predicts another 7% annual price growth for 2026 and 2027.
And I would listen to them.

Listen to what I'm telling you—I won't steer you wrong.
I've lived here for 18 years. I rented out my property for 11 years.
I've been leading my real estate company for three years.

No, the bubble won't burst.

Just like it won't burst in certain other places:

Monaco: €52,000 per sqm
Hong Kong: €21,000 per sqm
Singapore: €17,000 per sqm

What do the Netherlands and these locations have in common? Land scarcity.
This is the primary factor preventing prices from falling.

Compared to this, all other factors pale in significance.
Add to this:

Failed new housing construction plans. The plans weren't ambitious to begin with, and they still failed to deliver.
Passive government in perpetual collapse
Expat interest. Yes, like it or not, expats (including myself) genuinely heat up the market by injecting capital. This isn't criticism—it's an objective factor. We see the same pattern in numerous other countries.

What should you do if you realize the "bubble" isn't going anywhere, but you need to buy property?
Look for undervalued locations.

Understanding Overvalued vs Undervalued Real Estate Markets in the Netherlands

Let's start with what overheated and undervalued locations actually mean, using a simple example.

What do Amsterdam real estate and a trendy waffle shop with long queues have in common?

Hype.

Someone featured the waffle shop on TikTok, and suddenly everyone flocked there. The seller raised prices while maintaining the same quality.
Meanwhile, there's another waffle shop nearby with much better waffles. But it hasn't been featured on TikTok yet.
So people walk right past it.

Believe it or not, real estate works almost the same way—especially now, in the social media era.

The Utrecht Case Study

About 18 months ago, every expat in the Netherlands started talking about Utrecht.
No surprise: Amsterdam prices had skyrocketed, and people suddenly discovered other interesting locations on the map.

The result? While average national price growth was around 7%, Utrecht prices surged by over 17% that year!

Did the quality of properties change? No.
The hype simply increased. "Everyone's rushing there, so I will too!"

How to Identify Undervalued Locations

Where are undervalued areas?

Typically, where expat crowds haven't arrived yet.
But how do you distinguish them from uninteresting dead zones?

You need to analyze:

Transportation accessibility
Infrastructure quality
Municipal development plans
Current market conditions

Top 5 Undervalued Towns Near Amsterdam (2026)

Here are verified locations we've researched for our clients with direct access to Amsterdam. This list is current for 2026 and updated annually.

The common advantage: Direct transportation to Amsterdam combined with non-inflated prices.

Price comparison:

Amsterdam (average €8,500/sqm): €500,000 buys you a 70 sqm apartment with 1-2 bedrooms
These locations (average €3,800-4,800/sqm): €500,000 buys you a townhouse with:
- Substantial private garden
- Covered terrace
- Garage
- Underfloor heating
- Solar panels
- Spacious layout
- Scenic views
- Peaceful surroundings
- Excellent neighbors