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Yes, the analysis of Amsterdam's property market is included in our pack
Considering buying a nice property in Amsterdam? You're not alone!
Amsterdam's picturesque canals and artistic heritage captivate many, making them dream of owning a cozy canal house or a contemporary loft in this Dutch cultural hub.
Does it make sense from a financial perspective, though? Are property prices increasing in Amsterdam? Is it expensive? Should you consider buying in the Jordaan or De Pijp? Are there any secret taxes? Where are the best yields?
We've solved it for you.
The Investropa team has really dug into this market. Actually, we've put all our findings together in a pack. Get it now.
In this article, we'll provide you with helpful information.
How is the property market in Amsterdam?
Is the property market on an upward trend or a downward trend? Let's examine the data.
Property types
In Amsterdam, there are various types of properties for sale to cater to different preferences and needs.
These include apartments, which are typically located in multi-story buildings and are ideal for individuals or small families. Additionally, there are townhouses, which offer more space and often feature traditional Dutch architecture.
For those seeking more privacy and space, detached houses are available, providing a standalone residence with a private garden.
Furthermore, canal houses, iconic to Amsterdam, offer a unique experience with their picturesque canal-side locations and historical charm.
Lastly, investment opportunities may include studio apartments or commercial properties for those interested in rental income or business ventures.
Whether you're looking for urban living, historical charm, or investment potential, Amsterdam offers a diverse range of properties to suit various tastes and purposes.
Buy or rent?
(If you're keeping it for yourself and not renting it)
If Amsterdam is your home or a place you're planning to relocate to, you may be contemplating the buy vs. rent decision in this charming Dutch capital.
Obviously, it's better to buy if you plan to stay in Amsterdam long-term, as it can be more cost-effective in the long run and provide a greater sense of security and stability.
Want to make a good decision? Check out the property price-to-rent ratio. This number gives you an idea of how long it will take to break even on the property's purchase using rental income.
According to Numbeo, the property price-to-rent ratio in Amsterdam is around 22.11, which is around the world average.
This value shows that it would take you 22 long years of paying rents before you can own a property in Amsterdam. Renting for such an extended period means you wouldn't be building any equity, and you might end up spending more money without gaining ownership of the property.
Property prices in Amsterdam
On average, according to the last data from Statistics Netherlands, purchasing a property in Amsterdam would cost you around $9,200 per square meter.
It's evident that there are significant disparities. The value of a square meter for a canal-side house in Amsterdam might be higher compared to a city-center apartment. You'll get a more detailed in our pack for buying property in Amsterdam and in Holland.
To give you some context, it is similar to the prices you can find in a city like Busan.
Also, housing prices in Amsterdam are higher (122%) than in Brussels.
The most expensive neighbourhoods in Amsterdam are probably Amsterdam-Zuid and the Grachtengordel, while the cheapest areas are probably Amsterdam-Noord and Bos en Lommer.
Trends
First and foremost, we have to acknowledge that the Netherlands is, today, an extremely stable country. The last Fragile State Index that has been reported for this place is 22.1.
Keep this in view when pondering the viability of buying a property in in Amsterdam.
Also, according to the International Monetary Fund (IMF), Holland's economy is expected to soar by 6.5% in the coming 5 years, resulting in an average GDP growth rate of 1.3%.
If you intend to invest in real estate in Amsterdam it's a good thing because an expanding economy usually means people earn more, so they can buy property for themselves or as an investment, causing property demand (and then prices) to increase.
Also, in Holland, the average GDP per capita has changed by 4.5% over the last 5 years. Despite being minimal, there is still some observable growth.
This is a strong positive signal: housing prices in Amsterdam might become more expensive in 2024 and later on.
However, if we check the UBS Global Real Estate Bubble Index, we can see that the Amsterdam property market is currently significantly overvalued and presents a risk of a bubble (the index is at 1.62 and there is a bubble risk for a score above 1.5).
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Holland right now.
Buying property in Amsterdam
Buying real estate in Amsterdam can be difficult due to the lack of reliable and up-to-date information available to buyers. That's why we have created the pack to buy property in Amsterdam and in Holland.
Buying process
In our pack, we've explained the entire process of buying properties in a detailed way. We've pointed out the mistakes to steer clear of, shared tips for finding properties that give you the best returns, and provided information about taxes and necessary documents.
Now, we're giving you a simplified version of the buying process.
This is the step-by-step process to purchase a property in Amsterdam:
- Research the Amsterdam property market and local regulations.
- Secure financing and get a mortgage pre-approval from a Dutch bank.
- Find a registered Amsterdam real estate agent (makelaar).
- View properties that meet your criteria, considering leasehold land (erfpacht) if applicable.
- Make an offer in writing, including terms and conditions, using the standard NVM purchase agreement.
- Negotiate the purchase price and conditions with the seller.
- Hire a civil-law notary (notaris) to handle legal aspects and conduct a title search.
- Conduct a structural survey (bouwkundige keuring) of the property.
- Sign the official purchase agreement (koopovereenkomst) prepared by the notary.
- Pay a deposit (usually 10%) into the notary's escrow account.
- Complete the necessary legal checks, including obtaining a Land Registry extract (Kadaster).
- Finalize the property transfer at the notary's office, sign the deed of transfer (akte van levering), and pay the remaining amount.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Holland.
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Where to find a property
You may embark on your property search in Amsterdam with these helpful websites:
- Funda - Offering services for buying, renting, and selling properties across Europe.
- Pararius - The largest independent website for rental properties in the Netherlands.
- Expatica - Providing various housing options in the Netherlands, including apartments for rent.
- Only Expats - A rental portal in the Netherlands with listings suitable for expats, including houses and apartments for rent.
- Rightmove - A property website offering a range of properties for sale in the Netherlands.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Holland.
Properties & Budget
As mentioned before, the average price per sqm in Amsterdam is $9,200. A 1-bedroom property with 60 square meters would cost approximately $552,000, while a 2-bedroom with 85 square meters would cost approximately $782,000.
However, property prices can vary because of their qualities and where they're located.
Property prices in Amsterdam's top areas are typically higher. A villa in De Pijp might come to around $2,240,000, whereas a residence in Jordaan could be priced at $2,070,000.
On the other hand, some places are more affordable. You may find a condominium in Bijlmer for $300,000, or you might locate one in Osdorp priced only at $250,000.
We give a more detailed pricing list in our full pack for buying property in Holland.
Mistakes to avoid
Here are the main pitfalls specific to buying a property in Amsterdam, Netherlands:
- Ground lease: Many properties are on leasehold land (erfpacht), resulting in recurring fees and potential future renegotiation issues.
- Monumental status: Historic buildings with monument status may face strict renovation regulations and higher maintenance costs.
- Coffeeshop proximity: Nearby coffeeshops can attract crowds and cause disturbances, affecting property value and tranquility.
- Dutch language contracts: Legal documents in Dutch may pose challenges for non-Dutch-speaking buyers to understand all terms thoroughly.
- Cycling traffic: Properties near busy cycling routes can experience noise and limited parking, impacting convenience and privacy.
- Expatriate restrictions: Certain areas may have restrictions on property purchases by non-EU residents or require residency permits.
- Water damage risk: Proximity to canals and rivers increases the risk of water damage during heavy rainfall or floods.
- Homeowner association rules: Stricter association rules (Vereniging van Eigenaren) can limit property modifications and add to monthly expenses.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Netherlands Property Pack
Living in Amsterdam
Living in Amsterdam is an exciting and vibrant experience, with a thriving cultural scene, beautiful architecture, and plenty of outdoor activities to enjoy.
Cost of living
The cost of living in Amsterdam is relatively high compared to other European cities. The average cost of living in Amsterdam is estimated to be around €2,000 per month including rent, food, transportation, and entertainment.
Here are some examples to better understand the cost of living in Amsterdam:
- A "stroopwafel" (Dutch syrup waffle) at a local market: $1.
- Rent for a one-bedroom apartment in the Jordaan neighborhood: $2,000 per month.
- "Broodje haring" (herring sandwich) at a fish stand: $5.
- "Koffie verkeerd" (Dutch coffee with more milk) at a café: $3.
- Groceries from the "Albert Heijn" supermarket: $50 per week for one person.
- Ticket to the Van Gogh Museum: $20.
- Monthly membership at a "Fit For Free" gym: $30-$40.
- A bottle of "Heineken" beer at a local bar: $4.
Neighbourhoods
Since our intention is to provide information in a clear and reader-friendly way, we've created a summary table outlining the various neighborhoods in Amsterdam. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Jordaan | Jordaan is a charming and picturesque neighborhood with narrow streets, canal houses, and a vibrant artsy atmosphere. | Quaint ambiance, artistic community, trendy boutiques and cafes. | Limited parking, can be expensive to live in. |
De Pijp | De Pijp is a lively and diverse neighborhood known for its multicultural vibes, open-air market, and bustling nightlife. | Great food scene, vibrant street life, close to city center. | Can get crowded, noise from nightlife. |
Grachtengordel | Grachtengordel, meaning "Canal Belt," is a UNESCO-listed area with picturesque canals, historic buildings, and charming bridges. | Beautiful scenery, cultural heritage, central location. | Expensive housing, busy tourist area. |
Oud-West | Oud-West is a trendy neighborhood with a mix of cultures, lovely parks, and a hipster vibe. | Cosmopolitan atmosphere, diverse dining options, parks and green spaces. | High demand for housing, limited parking. |
Oostelijke Eilanden en Kadijken | Oostelijke Eilanden en Kadijken, or Eastern Islands and Docks, is a peaceful area with a maritime history and scenic waterfront. | Tranquil surroundings, historical charm, waterfront views. | Relatively quiet, limited public transport options. |
Amsterdam Noord | Amsterdam Noord is a rapidly developing area with creative hotspots, modern architecture, and panoramic views of the city. | Up-and-coming neighborhood, affordable housing, scenic beauty. | Less established amenities, limited nightlife. |
Plantagebuurt | Plantagebuurt is a green and cultural neighborhood with the Artis Royal Zoo, botanical garden, and historic buildings. | Green spaces, cultural attractions, peaceful environment. | Limited shopping options, can be quiet in the evenings. |
Westerpark | Westerpark offers a mix of nature and urban living, with a large park, cultural venues, and creative hotspots. | Nature and recreational opportunities, cultural events, trendy cafes. | Some areas can be noisy, limited parking. |
Life in Amsterdam
Amsterdam is a major economic hub in Europe, with a thriving business environment and a high quality of life. The city is home to a large number of international companies and financial institutions, as well as a well-developed infrastructure and a highly educated workforce.
What expats usually like the most about Amsterdam is its vibrant culture and diverse population, as well as its rich history and unique architecture. Additionally, they appreciate the city's easy access to nature, with its many parks, canals, and bike paths.
Regarding safety, the crime rate of Amsterdam is around 29, which is a really good score. Most crimes are minor crimes.
A good point for a property investor - Amsterdam has an extensive network of metro, tram and bus lines that form a comprehensive mass rapid transit system.
Access to healthcare in Amsterdam is more than excellent, with a Healthcare Index of 77. A strong healthcare infrastructure always improves the desirability of a location, which is a good thing for real estate.
Finally, it is worth noting that Amsterdam has two world-class universities: the University of Amsterdam (top 60) and the Vrije Universiteit (top 130).
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Renting out in Amsterdam
If you're considering purchasing property solely for renting and earning income, you'll find valuable information in this section.
Long-term
Tenant Profiles in Amsterdam
According to the data reported by Wikipedia, the home ownership rate in Holland is 71%, which is average.
It means that, if you decide to buy and rent out in Amsterdam, there will be a good number of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target students, young professionals, expats, and families in Amsterdam. The city is also home to a large number of tourists, so there is potential for short-term rental as well.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Centrum | Young professionals, expats | Central location, nightlife | $1,500 - $3,000 |
House in Jordaan | Families, retirees | Quaint neighborhood, canal views | $2,000 - $4,500 |
Studio in De Pijp | Youthful, artsy community | Trendy area, local markets | $1,200 - $2,500 |
Apartment in Oud-West | Professionals, young couples | Stylish living, parks | $1,800 - $3,500 |
Houseboat in NDSM | Adventurous individuals, creatives | Unique living, waterfront | $1,500 - $3,000 |
Apartment in Zuidas | Professionals, business travelers | Business district, modern amenities | $2,000 - $4,000 |
Studio in Noord | Young artists, freelancers | Creative community, alternative scene | $1,000 - $2,000 |
Rental yields
Nowadays, rental yields in Amsterdam are usually below 5%. It's not much. A good rental yield is usually around 7% or higher. Maybe, you knew it already.
The best rental yields in Amsterdam are usually found in multi-family dwellings in the city's outer boroughs, such as Amsterdam-Noord and Amsterdam-Zuidoost, due to their lower property prices and higher rental demand. Additionally, properties near public transportation hubs tend to have higher rental yields due to their convenience and accessibility.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Finally, be aware that rental incomes in Amsterdam are taxed at 13%, which is not much.
Short-term
You could also decide to rent short-term to tourists visiting Amsterdam, as well as business travelers and digital nomads. Additionally, there is a large student population in Amsterdam, making students another potential tenant for short-term rental.
If you decide to go with that option, look for properties in the city centre, particularly in the Jordaan and De Pijp neighbourhoods. These areas are known for their vibrant nightlife and are popular with tourists.
Currently, there are approximately 5,000 active Airbnb listings in Amsterdam, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $267, which is quite high.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Amsterdam can make around $3100 per month. Also, the average occupancy rate is estimated at 90%.
Is it worth buying real estate in Amsterdam then?
Certainly, when it comes to buying a property in Amsterdam, it's all about weighing your options and aligning them with your specific circumstances and aspirations. In general, purchasing property in Amsterdam makes sense if you're committed to making this city your long-term home or if you're keen on dipping your toes into the world of real estate investment.
Buying offers stability, helps you build equity, and can be financially advantageous if you're planning to stay put for a while. It also enables you to enjoy the vibrant culture, charming neighborhoods, and unique experiences that Amsterdam has to offer. Moreover, Amsterdam's stable economy and anticipated GDP growth can be promising signs for property value appreciation over time. However, be aware of potential market risks, as Amsterdam's property market is currently considered overvalued.
On the flip side, if you're not certain about your long-term plans in Amsterdam, if budget constraints are a concern, or if you're uncomfortable with market uncertainties, renting might be the more practical choice. Renting offers flexibility, particularly for those with short-term stays or limited financial resources. It allows you to explore Amsterdam without the financial commitment and responsibilities that come with property ownership.
Moreover, navigating the complexities of Amsterdam's property market can be challenging without local knowledge, so renting can be a simpler and hassle-free option for many. Overall, the decision to buy or rent in Amsterdam should be driven by your personal goals, financial situation, and commitment to the city, as there's no one-size-fits-all answer.
Make sure you understand the real estate market in Amsterdam
Don't rush into buying the wrong property in Holland. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.