<p><strong>The Dutch housing market remained resilient in 2026-Q2 despite higher mortgage rates, weakening affordability and ongoing geopolitical uncertainty. House prices and transaction volumes continued to rise, while housing supply indicators improved through higher permit volumes and an expanding construction pipeline. At the same time, mortgage demand softened and investor divestment continued to reshape both the owner-occupied and rental markets.</strong></p>

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<h2>House prices continue to rise as transactions remain strong</h2>

<p>The Dutch House Price Index (HPI) reached 154.9 in 2026-Q2, up 4.2% YoY and 0.9% QoQ. Housing transactions totaled approximately 59,000, increasing 2.7% YoY and 5.4% QoQ.</p>

<p>Regional differences remained significant. Groningen recorded the strongest annual house price growth at 7.9%, while Amsterdam continued to lag behind the national average with price growth of just 0.8% YoY.</p>

<h2>Mortgage demand softens as affordability pressures increase</h2>

<p>Mortgage application volumes declined by 5% YoY during the quarter, according to HDN. Purchase-related applications fell 6%, while starter applications dropped by 12%, suggesting affordability pressures are increasingly affecting first-time buyers.</p>

<p>Despite lower volumes, the average purchase mortgage rose to EUR 376,600, while the average financed property value reached EUR 532,100.</p>

<h2>Housing supply shows signs of improvement</h2>

<p>Housing supply indicators improved meaningfully during the quarter. Approximately 43,000 building permits were issued in the first five months of 2026, up around 28% compared to the same period last year. The construction-started pipeline also continued to expand.</p>

<p>New construction completions remain relatively subdued, however, with around 25,000 homes completed in the first five months of the year, down 7% YoY. The improving permit pipeline suggests supply growth could strengthen in the coming years.</p>

<h2>Investor sales continue to reshape the market</h2>

<p>Investor divestment remained an important theme. During 2026-Q1, investors sold more than 4,500 homes net to owner-occupiers, continuing the gradual transfer of housing stock from the rental market to owner occupation.</p>

<p>Meanwhile, the rental market remained tight. Average rents in the unregulated sector increased by 4.7% YoY to EUR 20.94 per square meter, outpacing both inflation and house price growth.</p>

<h2>Mortgage spreads tighten as rates remain volatile</h2>

<p>Dutch mortgage rates declined modestly during the quarter as swap rates eased, although they moved higher again in July amid renewed geopolitical uncertainty caused by the conflict in the Middle East.</p>

<p>Mortgage spreads tightened by approximately 12 basis points on average during Q2, reflecting improved funding conditions and increased competition among lenders.</p>

<h2>Outlook: positive, but with growing headwinds</h2>

<p>Dutch financial institutions continue to expect house prices to rise over the coming years, although most revised their forecasts modestly downward during the quarter. Higher mortgage rates, affordability pressures and geopolitical uncertainty are increasingly cited as key headwinds.</p>

<p>Nevertheless, structural housing shortages, wage growth and improving supply indicators continue to support the market. Most forecasters expect house price growth to remain positive in both 2026 and 2027, albeit at a more moderate pace than previously anticipated.</p>

<p><strong>Disclaimer</strong></p>

<p>Dynamic Credit Partners Europe B.V. (‘Dynamic Credit’) is a registered investment company (beleggingsondernemingsvergunning) and a registered financial service provider (financiëel dienstverlener) with the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten). This presentation is intended for informational purposes only and is subject to change without any notice.The information provided is purely of an indicative nature and is not intended as an offer, investment advice, solicitation or recommendation for the purchase or sale of any security or financial instrument. Dynamic Credit may in the future issue, other communications that are inconsistent with, and reach different conclusions from, the information presented herein. Dynamic Credit cannot be held liable for the content of this presentation or any decision made by a third party on the basis of this presentation. Potential investors are advised to consult their independent investment and tax adviser before making an investment decision. An investment involves risks. The value of securities may fluctuate. Past returns are no guarantee for future returns.</p>