Homes in earthquake-prone Groningen have gone down in value: report

Earthquakes in Groningen have led to a reduction in house prices

Between 2012 and 2017 homes in the earthquake zone in Groningen have fallen in value by an average of 2.2% because the region’s reputation has been damaged, broadcaster NOS reports.

According to a report by research bureau Atlas voor Gemeenten, the total damage to the 92,000 affected homes, comes to €300m.

The researchers focused their attention on areas in which at least 20% of the homes were damaged by earthquakes and found that homes that were not physically damaged also went down in value.

Homes in Loppersum, a centre of many of the quakes, lost an average of 8% of their value, while homes in the city of Groningen are now between 0.9% and 2.9% cheaper.

NAM

The report comes on the day that gas production company NAM is appealing against an earlier court ruling in favour of 4,000 home owners and 12 housing corporations who are demanding immediate compensation for the fall in house prices.

While the company recognises that individual homes may have dropped in value, it only wants to pay the difference when these homes are sold.

If the judge again decides in favour of the claimants, 64% of the compensation costs will have to be paid by the state. The hearing is expected to last two days.