Why more expats are choosing to buy a home in the Netherlands
For many expats moving to the Netherlands, renting is often the first and most practical option. It offers flexibility and allows internationals to settle into a new country, city, and working environment before making long-term decisions.
However, the Dutch housing market has changed significantly in recent years. Rising rental prices, limited housing supply, and increasing competition are causing more expats to consider buying a property instead of continuing to rent.
For international professionals planning to stay in the Netherlands for several years, buying a home can increasingly be a smart financial and lifestyle decision.
A Competitive Housing Market
The Dutch housing market remains highly competitive in 2025.
According to recent market reports, the Netherlands is currently facing a housing shortage of nearly 400,000 homes. This imbalance between supply and demand continues to push both rental and purchase prices upward.
At the same time, house prices have continued to rise. Average property prices in the Netherlands increased by approximately 7–10% over the past year, with the average home now costing around €487,000 nationwide.
In many popular cities, including Leiden and the surrounding Randstad region, demand remains particularly strong due to the presence of international companies, universities, research institutions, and excellent transport connections.
As a result, more than 70% of homes in the Netherlands are currently being sold above asking price.
Rising Rental Costs
Expats often experience first-hand how difficult the Dutch rental market has become.
Private sector rental properties in cities like Leiden, Amsterdam, The Hague, and Utrecht are in extremely high demand. Available homes are often rented out quickly, sometimes within days.
Rental prices have also continued to increase. In 2025, average rents in the Netherlands rose by approximately 4.9%.
For many internationals, this means paying high monthly costs without building any long-term financial value.
In some cases, monthly mortgage payments for a purchased property may be similar to, or even lower than, renting a comparable home.
This is one of the main reasons why more expats are now exploring home ownership.
Building Long-Term Financial Stability
One of the biggest advantages of buying a home is the opportunity to build equity.
When renting, monthly payments go directly to a landlord. When purchasing a property, part of the monthly mortgage payment contributes toward ownership of the home itself.
For expats planning to remain in the Netherlands for at least three to five years, this can create greater financial stability and predictability.
In addition, the Dutch mortgage system is relatively accessible for internationals. Many Dutch banks offer mortgage opportunities to expats, depending on factors such as:
- Employment contract
- Income level
- Residency status
- Financial obligations
In some situations, buyers can finance up to 100% of the property value.
Why Leiden Remains Popular Among Expats
Leiden continues to attract a large international community thanks to its combination of historic charm, strong international presence, and central location.
The city offers:
- Excellent train connections to Amsterdam, Schiphol Airport, and The Hague
- International employers and research institutions
- Leiden University and the Leiden Bio Science Park
- A vibrant city centre with a high quality of life
Because of these factors, housing demand in Leiden remains consistently high for both rental and owner-occupied homes.
For expats planning to stay longer in the region, purchasing property can therefore provide both housing security and long-term value.
Important Costs to Consider
Although buying a property can be attractive, expats should also understand the additional costs involved.
Besides the purchase price itself, buyers should account for:
- Transfer tax
- Notary fees
- Mortgage advisor costs
- Property valuation costs
- Technical inspections
- Monthly maintenance and municipal taxes
Fortunately, the Dutch property market is highly regulated and transparent, helping protect buyers throughout the purchasing process.
Practical Tips for Expats
If you are considering buying a home in the Netherlands, the following steps can help:
- Explore your mortgage options early Understanding your financial possibilities makes the search process easier.
- Think long-term Buying is generally most beneficial if you plan to stay for several years.
- Be prepared for competition Homes in popular areas can sell quickly and above asking price.
- Work with professionals familiar with expats Experienced estate agents and mortgage advisors can help explain Dutch regulations and procedures clearly.
- Consider total monthly costs Ownership includes additional expenses such as taxes, insurance, and maintenance.
Conclusion
The Dutch housing market remains challenging, especially for internationals entering the rental market. Rising rents, limited supply, and strong competition are encouraging more expats to look at buying as a long-term solution.
Although purchasing a property requires preparation and guidance, it can offer greater stability, predictable monthly costs, and the opportunity to invest in your future while living in the Netherlands.
As your estate agent, we are happy to help you better understand the Dutch housing market and guide you through every step of the buying process.