ACTUAL
Dutch real estate market
The Dutch real estate market has been one of the strongest in Europe in recent decades. International investors are still bullish about prospects, driving further growth in the housing market.
Real estate property market in the Netherlands performs excellent in general with lots of international capital flow. In essence, Dutch real estate is equivalent to a secured bond, especially if you buy in Amsterdam Metropolitan area, Randstad or Eindhoven Metropolitan region, for example.
Even if the yields are not high, real estate still offers a cash yield or a net rental income of a few percent; a high return compared to zero interest offered on other assets. And the value of your property increases year by year. If you buy the right house on the right location and find a tenant with a well paid job, you can make a better return compared to bonds or other asset classes. People today are doing just that.
Rental property prices
in big cities
Rental market offer in the Netherlands shrinks futrther
In Amsterdam, the square meter price of a private sector rental home increased by 5,1 % compared to a year ago.
Rental square meter prices by location, Q4 2023
WEST
€29,91
OOST
€23,61
CENTRUM
€29,83
NIEUW-WEST
€21,47
ZUID
€29,20
ZUIDOOST
€19,30
NOORD
€25,18
.
In Rotterdam, the square meter price of a private sector rental home increased by 9 % compared to a year ago.
Rental square meter prices by location, Q4 2023
CENTRUM
€21,62
NOORD
€19,75
HILLEGERSBERG-S.
€20,74
FEIJENOORD
€18,42
KRALINGEN-CRO..
€20,56
CHARLOIS
€16,92
DELFSHAVEN
€19,76
IJSSELMONDE
€16,21
In Utrecht, the square meter price of a private sector rental home increased by 4,2 % compared to a year ago.
Rental square meter prices by location, Q4 2023
OOST
€24,53
NOORD-OOST
€20,33
BINNENSTAD
€23,12
ZUID-WEST
€19,96
WEST
€22,57
OVERVECHT
€17,97
NOORD-WEST
€20,99
LEIDSCHE RIJN
€17,52
What types of properties to consider for better returns?
A major trend in the European housing market is buyers and tenants seeking out smaller houses. They no longer choose to acquire grand villas; after all, these are expensive to buy and to rent. The elderly in particular are the ones with money, but they often can’t cope with maintaining huge houses. Younger people, on the other hand, don’t have the money for renting large properties. Therefore, we see the luxury segment has more vacancies and large villas dominate the market.
This is not only a financial trend but a social one. Property developers and investors should therefore consider houses and apartments of a medium size or smaller. They should also look into properties that are energy efficient, which is obviously big business almost anywhere in the world. This ‘small trend’ will even accelerate in the coming years.
See also