Netherlands Sees 22% Growth in Million-Euro Homes: Key Trends and Implications

Rapid Rise of Million-Euro Homes in the Netherlands

The Dutch housing market has witnessed unprecedented growth at its highest end. A recent Calcasa report reveals that in 2025 there are 273,000 homes in the Netherlands valued at €1 million or more—a 22% increase on the previous year and three times the number recorded in 2020. This surge means one in every 16 homes in the country now belongs to the coveted million-euro category.

With property values climbing steadily over the past decade, high-end residential stock has expanded from just 12,500 homes in 2013 to today’s tally of 273,000. As property prices continue to outpace income growth, only around 20% of Dutch households can afford a typical home on their average salary, putting pressure on renters and buyers alike.

National Overview: A Twenty-Fold Increase in 12 Years

Over the last 12 years, the number of million-euro residences in the Netherlands has swelled twenty-fold. In 2013, fewer than 13,000 homes reached this valuation. By 2020, the figure had tripled to approximately 90,000, and now it stands at 273,000.

According to Calcasa, the average value of a million-euro home in 2025 is €1.36 million, equating to over €6,700 per square metre. Buyers in this segment can typically expect properties with more than 210 square metres of living space on plots exceeding 1,200 square metres, often featuring luxury finishes and high-end amenities.

Regional Hotspots: Amsterdam Leads the Way

Certain municipalities dominate the million-euro market. Major cities naturally attract premium property investment, while affluent suburbs boast the highest proportions of expensive homes.

Top municipalities by total number of million-euro houses (2025):

• Amsterdam: 19,000+ homes • The Hague: 11,700 homes • Utrecht: 8,600 homes • Rotterdam: 6,500 homes

Looking at the percentage of residential stock valued at over €1 million, smaller municipalities rank even higher:

• Bloemendaal: 57% of homes • Laren: 53% of homes

These affluent municipalities combine proximity to metropolitan amenities with spacious, green neighbourhoods—making them magnets for high-net-worth buyers.

Key Drivers Behind the Surge

Several factors underpin the rapid expansion of the million-euro segment in the Dutch housing market:

1. Supply Shortage: The chronic shortage of housing, particularly in urban and suburban areas, has inflated property values across all price tiers. High-end homes, already scarce, have seen above-average price hikes.

2. Tax Incentives: The mortgage interest deduction (hypotheekrenteaftrek) remains one of the Netherlands’ most significant homeowner benefits. By allowing homeowners to deduct mortgage interest from taxable income, this incentive has bolstered demand for larger mortgages and more expensive properties.

3. Low Interest Rates: Persistently low borrowing costs have encouraged buyers to stretch their budgets. With borrowing cheaper than in previous decades, many households have moved into higher price brackets.

4. Wealth Accumulation: A growing number of high-income professionals, coupled with foreign investors seeking stable real estate assets, has driven demand for luxury properties in prime locations.

5. Urbanisation Trends: Continued migration to major cities for work and lifestyle, combined with limited development land, has pushed prices upward—especially in Amsterdam, The Hague, Utrecht, and Rotterdam.

Effects on Renters and Mid-Market Buyers

While the luxury segment flourishes, mid-market buyers and renters face mounting challenges:

• Affordability Crunch: With average home prices rising faster than incomes, only one in five households can now afford a typical property without stretching budgets uncomfortably.

• Rental Pressure: The shortage of for-rent mid-market homes pushes up rents, forcing many expats and young professionals into shared accommodations or longer commutes.

• Investment Competition: Institutional investors and wealthy individuals increasingly target the high end of the market, reducing the supply of family-sized homes that might otherwise become available at lower price points.

Policy Developments and Future Outlook

The Dutch government is actively reassessing homeowner tax benefits. Initial plans to retain a generous mortgage interest deduction are now under review, with proposals to limit or gradually phase out this relief for higher earners. Any changes could temper demand at the top of the market but may also dampen overall market activity.

Meanwhile, the coalition government’s initiatives to stimulate new construction—especially social and mid-price housing—aim to alleviate the broader supply shortage. If successful, these measures could slow the growth rate of million-euro homes by providing more affordable alternatives.

What Comes Next?

The million-euro housing segment in the Netherlands shows no sign of shrinking soon. Supply remains tight, and demand continues to outstrip availability. However, potential reforms to mortgage tax relief and concerted efforts to boost housing construction could gradually rebalance the market over the next five years.

For renters and prospective buyers, staying informed about regional trends, tax policy changes, and new construction projects is key. Aligning expectations with market realities will help you navigate this competitive landscape—whether you’re hunting for a starter home or evaluating a premium investment.

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