Police said an explosion occurred at a three-story apartment complex in The Hague.
Firefighters rushed to the scene to extinguish the fire, which caused many houses in the Tarwekamp area of the city to collapse at around 06:15 (05:15 GMT).
Rescuers are searching for about 20 people believed to have been there at the time of the explosion. So far, four people have been pulled from the rubble.
The cause of the explosion remains unclear, but Dutch police said a car drove off “at very high speed” shortly after and appealed for witnesses.
Dutch media reported that five apartments were destroyed in the explosion.
Rescue teams with sniffer dogs have been deployed to sift through debris, but some areas at the scene are still too dangerous to access.
Adam Muller, 14, told AFP news agency that the explosion was “like an earthquake”.
“I was sleeping when suddenly there was a loud bang,” he said.
“I looked out the window and just saw the fire. It was a big shock,” he added.
Dutch national police commissioner Janny Knol said there was “skepticism and uncertainty” in the community.
“We sympathize with all those personally affected or who fear for the fate of their loved ones,” Dutch King Willem-Alexander and Queen Máxima said in a statement.
Police are expected to provide an update at 15:00 local time (14:00 GMT).
