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The rental housing market in the Netherlands

When the opportunity arises to relocate abroad, energy is boosting and excitement is often the initial feeling. Creating a feeling of home becomes a priority, especially when family members are relocating as well. The current rental housing market in the Netherlands is boosting. But is it a good thing? Through this article, we would like to offer helpful advice to overcome any hurdles that might come your way during a home search in the Netherlands.

Expectations of the Dutch house

Expectations on housing depend on your personal situation and experience. But how does the Dutch property fit into that picture? The Netherlands is a small and densely populated country, with more than 500 people per square kilometre[1]. Due to the limited amount of space, many houses tend to be fairly compact out of necessity. Rooms are relatively small, stairs can be steep, and often there is only one bathroom.
Rental prices differ significantly per region. Distances between cities aren’t as large as you may psychologically expect them to be. Transpose a map of London over the Netherlands, and all of a sudden Amsterdam does not sound so far from The Hague. Takes this into account when limiting yourself to a specific search area.

The current market

An increase of demand for rental properties set in when the low interest rate caused a run on sale properties.  A shortage of rentals is growing ever since. Not only because of the steadily growing expat community, but also due to local home finders who are currently unable to buy. This shortage is expected to keep growing until 2020[2].. Consequently, the rental prices have been flying through the roof, with Amsterdam in the lead. The market in optima forma, as economics would say. But, not so “optima” for people currently searching for rental housing. Recent research has shown that the current average rental price per m2! in Amsterdam is €22,48. So, an average unfurnished apartment of 70m2 , will more or less cost €1575,- excl. per month. But of course in the high end neighbourhoods of the city, the rental price will even be higher. The average rental price per m2 for The Hague is €15,25, Rotterdam €14,06, Utrecht €16,05, Eindhoven €12,49, and Groningen €13,62[3].If an increase of budget is out of the question, we advise to consider settling yourself further away from the bigger cities. The Dutch public transportation system can take you wherever you want to go, easily and in comfort by train, bus, tram or ferry.

Agencies vs the Internet

The internet is helpful to get an idea of the current housing supply in the Netherlands. However, we advise to not rely blindly on this medium. Housing websites can post unavailable properties or even illegal properties. One important tip: When it seems too good to be true, it usually is! Renting an illegal property may have severe consequences, such as sudden eviction and financial fines. So, be careful and don’t shy away from asking advice from locals. When renting via a housing agency administration costs are involved, but in our opinion a worthy price for security. Another option is to hire an agent to search the entire market on your behalf. In this case, a full commission is applicable.

Settle Service offers a number of home finding programmes. Main goal is always to find the best solution. We will advise you on the best choices. If you have any questions, please do not hesitate to contact us.

[1] Source: https://opendata.cbs.nl/statline/#/CBS/nl/dataset/37296ned/table?ts=1528270300785, 6-6-2-18
[2] Source: https://www.rtlnieuws.nl/geld-en-werk/woningtekort-neemt-nog-jaren-toe-jongeren-en-ouderen-de-dupe,  6-6-2018
[3] Source: https://www.pararius.nl/nieuws/huurprijzen-middelgrote-steden-maken-opmars/NI0000000243, 7-6-2018

 

This blog was created in collaboration with De Haan removal company.