For many years, the Dutch housing market has been synonymous with the Randstad: Amsterdam, Rotterdam, The Hague and Utrecht. Together, these four largest cities in the country, commonly referred to as the G4, represent large and highly liquid housing markets with strong levels of demand, giving them a prominent position within the national market. For international investors, these cities have often served as the natural starting point when assessing residential investment opportunities in the Netherlands.

However, market developments in recent years suggest that a broader geographic perspective is becoming increasingly relevant. Since 2020, several cities outside the Randstad have recorded stronger relative house price growth than the traditional core markets within the Randstad. As a result, the relationship between house price performance in the Randstad and in urban markets elsewhere in the Netherlands has shifted noticeably.

This does not mean that new housing markets have suddenly emerged outside the Randstad. Many of these cities have long been established and active real estate markets, supported by their own economic and demographic fundamentals. What has changed is that their stronger relative price growth over recent years has brought them more into focus. To gain a better understanding of the Dutch housing market, it is therefore becoming increasingly important to look beyond the Randstad.

Why did the Randstad lead for so long?

For many years, the Randstad benefited from strong economic and demographic growth. In and around the G4 there was both domestic and international migration, while the region also housed some of the country's most important employment centres. Combined with limited housing supply, this generated substantial demand for housing and drove strong house price growth.

Between 2010 and 2020, municipalities within the Randstad benefited most from these trends. Only a limited number of municipalities outside the Randstad, including Eindhoven, Tilburg and Arnhem, managed to match or exceed the national average rate of house price growth during this period. Consequently, house price appreciation remained relatively concentrated geographically.

A new dynamic in the housing market

Since 2020, a different pattern has become visible in the Dutch housing market. The strongest relative house price growth is no longer occurring exclusively in the traditional Randstad municipalities but increasingly in municipalities outside the region.

Source: Brainbay, Savills Data, Intelligence & Strategy (2026)

This trend becomes clear when the median transaction price per square metre is indexed to Q1 2020. Based on preliminary transaction data for Q3 2026, house prices in the G4 have increased by approximately 52% since Q1 2020. Other urban municipalities within the Randstad recorded growth of around 56% over the same period, while urban centres outside the Randstad, such as Zwolle and Nijmegen, achieved growth of approximately 69%.

This indicates that housing markets outside the traditional core cities have experienced stronger relative price growth, narrowing the gap with the G4.

Source: Savills Data, Intelligence & Strategy (2026)

Several factors help explain this development. Changing migration patterns and differences in housing affordability have increased the attractiveness of regional housing markets. In many regional cities, households can often secure more living space for a similar price to the Randstad.

The rise of hybrid working has likely contributed as well, as proximity to major employment centres has become less critical for part of the workforce. In addition, the ongoing sell-off of former private rental homes has played a significant role. Because the private rented sector is more heavily represented in the Randstad, the sale of these properties has led to a relatively larger increase in owner-occupied housing supply in the region. This additional supply has eased upward pressure on prices and contributed to the more moderate rate of price growth in the Randstad.

At the same time, local factors remain important in explaining the differences between regional housing markets and the Randstad. These include the balance between housing demand and supply, as well as local economic and demographic developments.

Despite recent growth trends, substantial differences in absolute price levels remain. The latest data for Q3 2026 shows that the G4 continue to have the highest price levels, averaging €6,350 per sq m. Other urban municipalities within the Randstad average €5,290 per sq m, while urban markets outside the Randstad average €4,410 per sq m, despite their strong growth in recent years.

A broader geographic perspective? 

The Randstad remains a key pillar of the Dutch housing market. Its scale, structural housing demand and high liquidity ensure that it continues to be highly relevant for both domestic and international investors.

At the same time, developments since 2020 demonstrate that the strongest relative house price growth is no longer confined to the traditional core markets. Several regional cities have delivered above-average growth and are playing an increasingly prominent role within the Dutch residential landscape.

For investors, this does not imply a shift in focus away from the Randstad towards regional markets. Rather, it highlights the importance of analysing housing markets at the city level. Economic growth, demographic trends, housing shortages, rental growth, new-build supply and local market dynamics ultimately determine the attractiveness of a residential market.

The key question is therefore no longer where to invest in the Netherlands, but which combination of local housing markets best aligns with the desired balance between return, risk and diversification within a portfolio.