New figures released by housing market platform Pararius have revealed that the cost of renting in the Netherlands continues to rise, with the average price per square metre reaching a record high of 17,18 euros in the first quarter of 2022.
According to Pararius, rental prices rose by 6,7 percent between the first quarter of last year and the beginning of 2022, putting the national average at 17,18 euros per square metre. New tenants faced the biggest price hikes for properties dubbed upholstered rentals - unfurnished properties for let that have basic amenities such as curtains and kitchen appliances - with rates increasing by 9,1 percent over the past year, but price increases were observed across all housing types.
These dramatic price increases come after a notable drop in rental prices during the coronavirus pandemic, something that was largely attributed to a lack of new expats in major Dutch cities. Now, Pararius observes that the recent spike in prices is down to the fact that the supply of housing in the free sector is unable to keep up with growing demand.
“Many people who are now looking for a home are very limited in their options,” explains Pararius director Jasper de Groot. “Buying a home is difficult, people earn too much to lay claim to social housing and are therefore forced to turn to a much too small free sector rental market. In short: the housing market is locked.”
Amsterdam remains the most expensive Dutch city, with prices rising by 8,6 percent and tenants paying 24,29 euros per square metre. It’s followed by Amstelveen (20,45 euros per square metre), Haarlem (19,93 euros), and Leiden (19,90 euros). Prices in both The Hague and Rotterdam were slightly below the national average.
Unsurprisingly, the most significant increases were recorded in North Holland (+8,1 percent), South Holland (+6,6 percent), and Utrecht (+4,5 percent), making these the three most expensive provinces in the Netherlands. Drenthe, on the other hand, was found to be the most affordable, while in Groningen the average rental prices remained unchanged.
Thumb: oliverdelahaye via Shutterstock.