Current market developments positively influence second home market

Current market developments positively influence second home market

During the autumn edition of the Second Home International exhibition in Utrecht (2013) a public survey was launched among the visitors. This survey indicated that the current market developments have a positive influence on the Dutch purchasers’ purchasing process of a second home. Over  51.4 % of the visitors indicate that the current economic trends influence the choice to purchase a second home. The other part (48.6 %) indicates that they are largely financially independent and that they are not influenced by external factors. In addition, among others the need to purchase a second home overrules financial constraints. With regard to the current political and economic trends this is, according to the visitors, the right moment to purchase a second home.

Decrease real estate prices
Important factors that influence the purchasing process are the low real estate prices, the decreasing deposit rates, financial uncertainties and government measures. In view of the price decreases the real estate price levels are very low. Houses which seemed unaffordable at first are now at an attractive price level.

Decreasing deposit rates
Because of the decreasing deposit rates Dutch purchasers are looking for more profitable possibilities for their savings. With the current real estate prices in mind this seems the right moment to invest in a second home. When the real estate prices increase the value of the investment increases too. An investment in a second home is thus considered a stable investment.

Why a second home?
The visitors of the exhibition are specifically looking to purchase a second home. Over 87% of the visitors are looking for a second home for own use and additionally letting. Only 6.5 % is interested in purchasing a second home for letting purposes only. Besides there are still visitors who are looking for a home abroad because they want to leave The Netherlands (6.5%). For these people the exhibition is a medium where one can obtain a comprehensive view and gain information about outward migration. On the Second Home International exhibition over 150 exhibitors from over 25 countries are present.