The recovering economy, an unprecedented demand and historically low interest rates are pushing up house prices in the Dutch capital. The popularity of Airbnb is also credited for driving up the housing market even more.
The prices of existing homes in the Netherlands increased by an average of 4,3 percent in March, compared to the same period in 2015. This is the most significant increase in eight years according to the Central Bureau of Statistics.
The Dutch central bank De Nederlandsche Bank expects that it will take another two to four years before the interest rate increases.
Mortgage lenders have in 2016 continued to lower their interest rates, and there currently are very few signals that this trend will change in the near future.
Unlike in Berlin, home owners in Amsterdam are still quite free in how they can rent out their house through Airbnb.
ING recently reported that one in six property owners in the tourist areas rent out all or part of their house via the popular website. The Dutch bank estimates it’s about 11.000 households that do so regularly.
Buying to let is increasingly becoming a way to earn money for home owners in Amsterdam. Potential buyers are willing to pay more because of the prospect of renting out the property to increase their income.
This is leading to inflated market prices, especially for houses with an extra room or entrance, according to ING.
The Telegraaf reports that, according to house-hunting website Huizenzoeker, the price per square metre is almost twice as high in Amsterdam as it is in Rotterdam, with 3.862 and 1.960 euros respectively.
Home buyers in Amsterdam are already beginning to pay more than the asking price, according to Het Financieele Dagblad. Sven Heinen, head of the Amsterdam real estate association, told the paper that customers are asking their real estate agent how much they need to pay over the asking price in order to stand a chance.
In the first quarter of 2016, 48 percent of successful home buyers spent more than the asking price, paying an average of 6,2 percent more.