The Guardian has reported on ING?s expectation of a fall in Dutch property prices. Now could be a decent time to invest in Dutch properties.
The head of ING Real Estate Finance Netherlands apparently told Reuters on 27 May that it anticipates property prices in the Netherlands will drop over the next year across the residential and commercial markets. ING anticipate at least the next 12 months will see a fall in price before any signs of recovery will be seen in retail and office property prices.
With regard to residential property prices, there has already been a drop of 3.1 per cent in the first financial quarter. Similar to the business property market, it is expected house prices will drop further and only start to recover in ?the second half of 2010?, according to Peter Gobel, country manager for ING Real Estate Finance Netherlands.
Mr Gobel explained why the Dutch property market has experienced such a decline: ?The bid and ask spread in the property market is still too large. Buyers are not willing to pay what the seller wants? There are buyers but parties are putting money at the bank. I think that?s wise, to try to build some reserves.?
In times of falling property markets, caution is always advised. However, with prices predicted to fall over the next year, the Dutch property market could soon become a good place to invest.
Mr Gobel said of ING Real Estate Finance Netherlands: ?We?re open for business, we have the funds available to services clients. But you see that the market has not yet reached the bottom.?