House prices could rise faster than this year in 2025, as the shortage deepens and wages continue to increase, Rabobank economists said on Tuesday.

This year, the average increase is forecast to reach 9.1% and next year it could be a further 10.7%, Rabobank said. Both figures are an upward revision of earlier forecasts.

Wages are set to rise by 5% next year, on top of this year’s 6.1%, and would-be buyers are also expecting a house price increase which is further pushing up prices, Rabobank said.

House prices and net mortgage repayments are rising faster than incomes and this will lead to weakening demand in the future, housing market economist Carola de Groot said.

Rabobank also expects more people to leave the big cities in the central belt of the country and head for more rural areas, where house prices have fallen in recent years. But that, in turn, will drive up prices in the countryside.

Rabobank expects houses in the south of Limburg and in the northeast will rise most in 2025.