Rent prices drop in Dutch cities as expats stay away
Rent prices in cities such as Amsterdam and The Hague dropped this quarter for the first time in years due to an absence of expats following the coronavirus pandemic.
Private sector housing
A report by housing market platform Pararius has revealed that private sector housing rent rates have dropped in the second quarter of 2020 in comparison to the same period in 2019 in a number of Dutch cities.
Pararius cites the temporary absence of expats due to the coronavirus as the main reason for this drop in prices. Jasper de Groot, director of the company, noted that expats mostly rent property in the highest price bracket, and landlords are dropping prices to entice expats to the property and avoid it standing empty.
Cities which saw a drop in rent prices are: Bussum (-3,7 percent); Amstelveen (-2,8 percent); Almere (-2,4 percent); Eindhoven (-1,9 percent); Hilversum (-1,5 percent); Amsterdam (-1,4 percent); and The Hague (-0,5 percent).
Across the Netherlands, rents rose by an average of 2,4 percent in the private sector, the smallest national increase since 2015. Average prices in Utrecht also rose by more than 5 percent.
Renting in Amsterdam
Nationally, tenants pay an average of 16,70 euros per square metre of living space per month. Amsterdam’s prices, however, sit well above this average, with a price of around 23 euros a month per square metre.
The effect of the coronavirus is felt in Amsterdam, where HousingNet (an estate agency specialising in Amsterdam properties) have noticed a sharp decrease in the number of internationals looking for housing in the capital. "Normally we rent out about 80 percent of our portfolio to expats," says Thijs IJpeij of HousingNet, "Now, that's less than half." This has also resulted in a significant drop in prices, where for example a typical expat house in Buitenveldert of 120 square metres would now cost 1.850 euros a month, instead of the usual 2.400 euros.
According to Pararius, the city of Amsterdam also saw an increase in the number of apartments available for long-term rent, most likely due to the tourism standstill and the regulations placed on Airbnb rentals in the city. Landlords are therefore opting to temporarily rent apartments out to house-hunters instead of tourists.