The mortgage market is running at full speed! In the first quarter of this year, no less than 23.4% more mortgage applications were submitted than in the same period last year. Are you planning to buy a home or transfer your mortgage? Then this is important information for you.

Record number of mortgage applications

HDN, the organization that registers digital mortgage applications in the Netherlands, recorded no less than 142,076 mortgage applications in the first quarter of 2025. March was even the busiest month since April 2022, with 53,392 applications.

What is striking is that this increase took place despite a turnaround in interest rate developments. After declines in 2024, lenders increased their interest rates again at the beginning and end of the first quarter. Many mortgage advisors and consumers acted quickly to still be able to benefit from the lower rates, which led to clear peaks in week 3 and week 10 of the quarter.

Who applies for a mortgage the most?

Renovators and starters in the lead

If we look at the different customer profiles, we see that 'Renovators' formed the largest group in the first quarter. With 28,081 applications, they accounted for more than 20% of the total. They were followed by:

- 'Starters in the high segment' (15,752 applications)
- 'Upstreamers' (15,734 applications)

Especially starters in the high segment grew considerably, with an increase of 34.4% compared to last year. Younger starters also participated well with a growth of 15.9%.

Remortgage market is picking up again

Also interesting: the remortgage market is gaining strength again. Advisors submitted 11,307 applications for refinancing, an increase of no less than 45.5% compared to the first quarter of 2024. Although this is still far below the record of February 2022 (more than 21,000 applications), the increase shows that consumers are once again showing interest in refinancing.

Major cities and expensive provinces in demand

In the four major cities (Amsterdam, Rotterdam, The Hague and Utrecht), the buyer market picked up above average, with a growth of more than 35%. This increase seems to be strongly related to the selling off of rental properties.

The number of purchase applications also grew significantly in the three most expensive provinces:
- Utrecht (+24.3%)
- Noord-Holland (+26.6%)
- Noord-Brabant (+21.5%)

In Overijssel, growth remained relatively limited at +6%.

Higher house prices and mortgage amounts

The average house value reached a record €508,100 in the first quarter, an increase of 9.4% compared to last year. For purchase purposes, consumers applied for an average mortgage of €370,700, which is 7% more than last year. In the non-buyer market (refinancing and increases), the average mortgage amount was €120,700, an increase of 9.8%.

Young people dominate the market

Figures from De Hypotheker show that home buyers and owners up to the age of 35 contributed to the growth, with an increase of 30%, followed by people aged 55 and over with an increase of 21%.

First-time buyers continue to dominate the housing market. They submitted 56% of all mortgage applications for home purchases. Compared to the same period last year, the number of applications from first-time buyers grew by 23%. Most starters are younger than 35 years old (80%), but their number is also increasing among older age groups. In the past three months, 37% of home buyers between 35 and 45 years old bought their first home.

What does this mean for you?

Are you planning to buy a home?

Are you considering buying a house? Then it is good to know that the market is currently very active, especially in the big cities. The sale of rental properties by investors offers opportunities, especially for starters. However, it is important to take into account the rising house prices and interest rates.

Do you want to transfer or increase your mortgage?

If you are considering transferring or increasing your mortgage, for example for a renovation or sustainability, then you are certainly not the only one. Many homeowners are currently choosing this. Due to the fluctuations in the interest rate, it can be smart to act quickly if you see a favorable rate.

Are you a starter?

As a starter, you are in good company! You currently form the largest group on the housing market. With the right guidance and a good insight into your financial possibilities, you can still find a suitable home, despite the rising prices.

Personal advice at M&D Real Estate

At M&D Real Estate, we closely monitor developments on the mortgage market. We are happy to help you make the right choices in this dynamic market, whether you are a starter, a mover or are considering making your home more sustainable.

Do you want to know what the current market developments mean for your specific situation? Or do you have plans to make your home more sustainable, in which our partner Labelbewust can help? Contact us for a personal consultation. https://www.labelbewust.nl can help? Contact us for a personal consultation.

We are happy to think along with you about your housing needs and possibilities in this active market!

Rotterdam, the Netherlands' second-largest city, has seen significant transformations over the past decade. Known for its modern architecture, vibrant culture, and bustling port, it's a city that's attracting both local and international attention. However, the influx of new residents and increased demand for housing have brought about a set of unique challenges and opportunities within the city's housing market.

Challenges in Rotterdam's Housing Market

One of the most pressing challenges is the escalating cost of housing. In recent years, property prices have surged, driven by factors such as population growth, urbanization, and increased interest from investors. For many first-time buyers and renters, this has made finding affordable housing a daunting task.
1. Limited Supply and High Demand The demand for housing in Rotterdam far outstrips the supply. New construction projects often face delays due to bureaucratic hurdles, high costs, and a lack of available land. This mismatch between supply and demand has resulted in a competitive market, with properties often selling quickly and above asking price.
2. Gentrification and Displacement As certain neighborhoods in Rotterdam undergo gentrification, long-time residents are finding themselves priced out of their own communities. This trend is most visible in areas like Katendrecht and Delfshaven, where redevelopment and new construction projects are transforming the urban landscape. While these changes bring economic growth and revitalization, they also lead to displacement and loss of community character.
3. Struggles for Renters Renters in Rotterdam face their own set of challenges. Rental prices have increased steadily, driven by a combination of factors, including demand from international students and expats. Additionally, the rise of short-term rental platforms like Airbnb has contributed to a shortage of long-term rental properties, further driving up prices for local renters.

Opportunities in Rotterdam's Housing Market

Despite these challenges, there are also opportunities emerging within Rotterdam's housing market.
1. Innovative Housing Solutions Rotterdam is known for its architectural innovation, and this spirit extends to housing solutions. The city has been exploring new concepts like modular housing, co-housing, and sustainable building practices. These approaches aim to provide more affordable and environmentally friendly housing options.
2. Revitalization of Underused Spaces The city has made efforts to revitalize underused or abandoned spaces, turning them into vibrant residential areas. The transformation of the former port areas into residential and mixed-use districts is a prime example of this trend. These projects create new housing opportunities while preserving Rotterdam's unique character.
3. Focus on Sustainability Rotterdam's commitment to sustainability has led to an emphasis on green building practices and eco-friendly living. This focus on sustainability not only benefits the environment but also enhances the quality of life for residents. New developments often include green spaces, energy-efficient designs, and infrastructure that encourages cycling and walking.

Navigating the Market

For those looking to navigate Rotterdam's housing market, it's crucial to stay informed about market trends and be prepared for a competitive environment. Working with a knowledgeable real estate agent, staying flexible in terms of location, and exploring alternative housing solutions can help prospective buyers and renters find suitable options.

While the current housing market in Rotterdam presents challenges, it also offers a landscape ripe for innovation and creativity. By embracing new approaches to housing and revitalizing existing spaces, Rotterdam continues to evolve, ensuring a vibrant future for its residents.