Javea, the Perfect Market for Dutch Families
In spite of the current pandemic, the international real estate sector continues to boom, and housing will become more expensive this year. According to a study by Bloomberg Economics, there is a great risk of a new housing bubble in many countries, including New Zealand, Canada or Switzerland, although this remains a distant possibility in Spain for the time being.
Nevertheless, in this post, we would like to focus on the situation in the Netherlands. This country is very much part of the DNA of Eurojavea, which is also seeing a major increase in house prices but against a very different backdrop than that of other places in the world. The thing is that in recent years, the property sector in the Netherlands has been experiencing an unprecedented scarcity of offerings.
One factor that has accentuated this situation is the removal of the tax on asset transfers for people younger than 35 years old. The Dutch government implemented this tax benefit in order to help young people buy their first home. However, this measure has worsened the problem since it has been observed that many of these buyers already own other properties. For this reason, this tax exemption does not apply to houses valued over 400,000 euros.
Another aspect to take into consideration is nitrogen. Currently, the majority of houses under construction have been mandated to stop exceeding the emission levels established by the European Union. This is a growing problem with no apparent short-term solution.
All of this has resulted in an unprecedented situation on the property market that has only just begun. In fact, we are facing one of the biggest price rises in the European Union and it is affecting all types of families. Some families that own houses are afraid to sell their houses because they fear that they might not find bigger ones. Other families with lower incomes are also suffering as there are no offerings for social housing.
Increasing Demand for Properties
According to the Dutch financial firm Rabonak, there was a housing deficit of 330,000 homes in the Netherlands in mid-2020, which is about 4% of the total. The Dutch bank has noted that this will continue to increase in coming years, so much so that Rabonak estimates that the deficit will be greater than 400,000 houses by 2025, more than 5% of national real estate.
In light of this growing scarcity and stagnation for both new and resale properties, price rises will continue over the next few months, and families, many of them in search of bigger houses, will be obliged to look for new houses elsewhere, even in other parts of the world. This is the case in Java, which has already started to see a reflection of this demand from Dutch buyers. No wonder there has been a major increase in demand in the Valencian Community recently, especially on the Costa Blanca and in Javea.
Being Dutch natives ourselves, at Eurojavea, we have a significant portfolio of customers from the Netherlands who are always looking for houses in our locality. For this reason, if you are considering selling a property in Javea, we can help you with your sale. On the other hand, if you are looking for a good opportunity to buy in our area, get in touch to receive information about our portfolio of houses for sale. We will be delighted to support you and give you our best advice.
*Post based on the article by Vicente Nieves: El precio de la vivienda se dispara en plena crisis en Holanda ante una escasez “inédita” de inmuebles (Housing prices are skyrocketing at the height of the pandemic in the Netherlands in the face of an “unprecedented” scarcity of apartment buildings) in El Economista.
