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What will happen in Amsterdam’s real estate market? Will prices go up or down? Is Amsterdam still a hotspot for foreign investors? How is the Dutch government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Amsterdam, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Rental prices in Amsterdam will rise moderately due to strong demand
In recent years, Amsterdam's rental market has experienced a noticeable increase in prices. For instance, by August 2024, rental prices had risen by about 6% compared to the previous year. This trend was evident with the average monthly rent for a one-bedroom apartment in central Amsterdam reaching €2,041, while in the suburbs, it was €1,692.
One of the main reasons for this price increase is the growing population and urbanization in Amsterdam. The city is attracting more people due to its economic opportunities and high quality of life, which naturally boosts the demand for rental properties. Additionally, the vacancy rate in Amsterdam is extremely low, at less than 2%, indicating a severe shortage of available housing units.
Moreover, the number of available rental properties in the Dutch private housing sector decreased significantly by 37.6% in the third quarter of 2024. This reduction in supply, combined with the high demand from international students and expatriates, who are often willing to pay higher rents, further contributes to the upward pressure on rental prices.
Sources: Pararius, Adleorelo, Chicago Booth Review
2) Property prices in Amsterdam will continue to rise because of high demand and limited space
In recent years, Amsterdam has seen a significant rise in property prices, with a 132% increase over the past decade. This trend continued in 2024, with a 5.24% increase in the first quarter alone. The limited availability of land for new developments is a key factor contributing to this rise.
The shortage of housing construction permits means fewer new homes are being built, especially in the most desirable areas of the city. This limited supply, combined with a growing population, creates a high demand for housing. As more people move to Amsterdam, the demand for homes continues to outpace the supply.
Additionally, Amsterdam's global appeal attracts international buyers and investors, further driving up demand. The city's cultural, financial, and political significance makes it a hot spot for both domestic and international investors. Low interest rates also make borrowing more attractive, increasing the demand for housing even further.
Sources: Global Property Guide, IAmExpat, Cushman & Wakefield
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Netherlands versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Short-term rental yields will drop as stricter rules hit platforms like Airbnb
In recent years, particularly in 2023 and 2024, Amsterdam has implemented stricter regulations on short-term rental platforms like Airbnb. These regulations require hosts to register their properties and limit rentals to a maximum of 30 days per year. Non-compliance can result in hefty fines, which can go up to €11,600.
As a result of these regulations, the number of Airbnb listings in Amsterdam has significantly decreased. From a peak of 12,000 listings in 2019, the number has dropped to around 5,000 by 2024. This decline in available listings suggests that many property owners are either unable or unwilling to comply with the new rules, leading to a reduced supply of short-term rental properties.
Moreover, the average price for short-term rentals has increased, but the actual number of bookings and occupancy rates may be negatively impacted by the regulations. This means that even though prices are higher, the profitability of short-term rentals could be decreasing due to fewer bookings. Additionally, some property owners are shifting to long-term rentals to avoid the regulatory challenges, further indicating a decrease in short-term rental yields.
Sources: Just Travelous, Dutch News, Business Insider
4) Virtual reality tours will attract more international buyers as they become a standard tool for property viewings
Virtual reality tours have become a common tool for property viewings, especially in cities like Amsterdam, due to their increasing adoption in the real estate industry. In the past, more than 50% of adults had already taken a virtual tour, and a significant 67% of home buyers expressed a desire for virtual tours when looking at listings. This trend has only grown stronger, with real estate listings featuring virtual tours receiving 87% more views than those without.
The rise in international buyers in the Amsterdam property market has also contributed to the popularity of virtual reality tours. By mid-2024, international buyers made up 1.8% of the Dutch housing market, with many purchasing homes priced above 400,000 euros. Virtual tours offer these buyers a convenient way to explore properties from afar, making it easier to make informed decisions without the need for physical visits.
Consumer preferences have shifted significantly towards virtual tours, with 54% of buyers unwilling to consider a property without one. Younger buyers, particularly those aged 18 to 34, are 130% more likely to book a showing if a virtual tour is available. This demographic shift has driven real estate agencies to incorporate virtual tours into their services, further enhancing their appeal to international buyers.
Advancements in VR technology have made these tours more accessible and affordable, with apps available in multiple languages and compatible with various VR devices. This has allowed real estate virtual tours to become more sophisticated, providing a realistic online experience that attracts more interest from potential buyers.
5) More foreign investors will enter Amsterdam’s residential market as it stays a safe investment haven
Amsterdam's residential market has been attracting foreign investors due to its rising property prices. In the first quarter of 2024, house prices in Amsterdam increased by 5.24% compared to the previous year, showing strong demand for residential properties.
The city has a history of providing consistent returns on real estate investments. For example, during a specific period, house prices in Amsterdam rose by about 132%, making it a prime location for investors seeking stable returns.
Additionally, Amsterdam is home to a growing number of international companies, which enhances its appeal as a business and investment hub. This trend is likely to attract more foreign investors looking for stable and growing markets.
Amsterdam is also ranked as one of the safest cities globally, with a high safety index. This level of personal security and quality of life makes it an attractive destination for foreign investors.
Sources: Global Property Guide, Bounce, CBRE
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6) Demand for rentals in Amsterdam's international school areas will grow as more expatriates move in
In recent years, Amsterdam has seen a noticeable increase in the number of expatriates moving to the city. By 2023, new arrivals made up 16% of Amsterdam's population, up from 11% in 2013. This growing expatriate community is a key factor driving demand for rental properties, especially in areas with international schools.
International schools in Amsterdam, like the Amsterdam International Community School (AICS), have experienced rising enrollment figures. This trend suggests that more families are relocating to Amsterdam for educational opportunities, further increasing the need for housing near these schools. Additionally, surveys show that expatriates often prefer living close to international schools, as seen in popular areas like Oud Zuid, which offers proximity to schools and amenities.
The shortage of rental properties in these desirable school districts is well-documented. With a waiting list for social housing exceeding 10 years, many newcomers are forced to seek rental options outside the social sector. This shortage is particularly pronounced in areas favored by expatriate families, leading to increased competition and rising rental prices.
Sources: Dutch News, AICS School Guide, MoveHub
7) Energy-efficient home construction in Amsterdam will increase due to new environmental regulations
In recent years, Amsterdam has seen a significant push towards energy-efficient homes, largely driven by new environmental regulations. These regulations have set higher energy efficiency standards for buildings, ensuring that new constructions are almost energy neutral. This means that homes are designed to use minimal energy, which is great for the environment and helps reduce energy bills.
To support this transition, the government has introduced various incentives. For instance, Amsterdam's Sustainability Fund, along with the Climate and Energy Fund, provides financial support for green construction projects. This makes it more attractive for builders to invest in energy-efficient homes, as they can receive financial assistance to offset some of the costs.
Moreover, there's a growing demand from consumers for eco-friendly properties. People are becoming more aware of the benefits of living in energy-efficient homes, such as lower energy costs and a reduced carbon footprint. This demand encourages builders to focus on sustainable construction practices to meet the expectations of potential buyers.
Additionally, media coverage has played a role in highlighting the advantages of energy-efficient construction. This has further motivated builders and homeowners to adopt sustainable practices, as they see the long-term benefits of such investments.
Sources: Greenberg Traurig, International Energy Agency, Climate Action
8) Young professionals will be drawn to co-living spaces in Amsterdam for affordable housing options
The rise of co-living spaces in Amsterdam is becoming increasingly attractive to young professionals, primarily due to the city's challenging housing market. In recent years, the accessibility of affordable housing has decreased significantly, with soaring house prices and rents making it difficult for young adults to find suitable living arrangements.
Rental prices in Amsterdam have been on the rise, with private rental sector prices reaching €25 per square meter by the end of 2022. This high cost is prohibitive for many young professionals, pushing them to seek alternative housing solutions. Co-living spaces offer a more affordable option, as they distribute living costs across multiple residents and provide shared amenities.
Moreover, young professionals are increasingly drawn to the flexibility and community-oriented nature of co-living spaces. Surveys have shown that they prioritize location, amenities, and networking opportunities over the size of their living space. This preference aligns well with the co-living model, which emphasizes affordability, flexibility, and social connectivity.
Sources: Frontiers in Sustainable Cities, Green Ocean Property Management
We have made this infographic to give you a quick and clear snapshot of the property market in the Netherlands. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Rental yields in the city will drop as property prices rise faster than rents
Property prices in Amsterdam have been on a steady rise, especially noticeable in recent years.
In the first quarter of 2024, existing home prices jumped by 5.24% compared to the previous year. This isn't just a blip; it's part of a consistent trend where property values are climbing faster than rents.
Looking back, between 1996 and 2001, house prices in Amsterdam soared by about 132%, outpacing the national increase of 104%. This shows a pattern where property values in the city tend to grow more rapidly than rental income.
Real estate experts are pointing out that new rent control measures might squeeze rental yields. These controls could lower average monthly rents, making it less profitable for landlords.
Adding to this, the Dutch House Price Index highlighted a significant rise in property prices in early 2024, reinforcing the trend of increasing property values.
With property prices climbing and rent controls in place, landlords might see their rental yields decline as property values outpace rent hikes.
Sources: Aparthotel.com, Global Property Guide
10) Property prices in Amsterdam-Noord will rise significantly as ferry services improve and new metro connections are established
In recent years, we've seen a clear pattern: when public transport improves, property prices tend to rise. This has been evident in various Amsterdam neighborhoods, where transport upgrades led to significant price increases. For example, in 2024, the average price of existing homes in Amsterdam rose by over 10% in the third quarter compared to the previous year.
Amsterdam-Noord is now experiencing similar improvements with new metro connections and enhanced ferry services. This improved connectivity is expected to attract more buyers to the area. In fact, the number of dwelling sales in the Netherlands increased by nearly 10% in the first quarter of 2024, showing a growing demand for properties in well-connected areas.
Moreover, government investments in infrastructure projects, such as these new transport links, often lead to higher property values. This is partly why the average purchase price in major cities like Amsterdam remains high. As Amsterdam-Noord becomes more accessible, it's likely to follow this trend.
Sources: Global Property Guide, ABN AMRO
11) Interest in family homes in Amsterdam's suburbs will grow as city living costs rise
In recent years, particularly in 2023 and 2024, property prices in Amsterdam's central districts have been on the rise. This increase is due to high demand and limited supply, making it challenging for families to find affordable housing in the city center.
The cost of living in urban areas, especially in Amsterdam's city center, has also become significantly higher. With average housing costs ranging from €7,500 to €12,500 per square meter, many families are finding suburban areas more appealing as they offer more affordable housing options.
Additionally, there has been a noticeable trend of families seeking larger living spaces. This demand is driven by the need for more room and family-friendly amenities, which are more readily available in suburban areas. Improved transportation links between the suburbs and the city center have made commuting easier, further increasing the appeal of suburban living for families.
Sources: Dutch Review, Bouwinvest Dutch Living Outlook
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12) Property prices in Amsterdam's city center will stabilize as supply meets demand
Amsterdam's city center is buzzing with new housing developments, boosting the number of available homes.
Take MIX Amsterdam, for instance, with its 528 rental apartments adding to the city's housing stock. This surge in supply is key to keeping property prices steady. The government is also stepping up, with initiatives like the Amsterdam Woonagenda 2025, which focuses on increasing regulated rental housing to meet demand.
Changes in zoning laws are making a big difference too. In Ravel, a new neighborhood, 1,350 homes are set to be built thanks to updated zoning plans. This means more construction and more homes in the city center.
Even without specific data for 2023 and 2024, the construction boom is hard to miss. More building activity is expected to balance the market, offering more housing choices for buyers.
The real estate market update for Q3 2024 shows a promising trend: new listings are matching buyer interest. This balance hints at a market adjusting to the increased supply, which could stabilize property prices.
Experts are optimistic, predicting a balanced housing market with growth in house prices and transaction volumes. As supply catches up with demand, Amsterdam's city center is likely to see property prices stabilize.
Sources: MRP Development, Zuidas, ASR Real Estate
13) Demand for accessible and senior-friendly housing in Amsterdam will grow as the population ages
In recent years, Amsterdam has seen a noticeable increase in its elderly population. Back in 2024, the Netherlands had over 3.6 million people aged 65 and older, making up 20.5% of the population. This growing number of older adults naturally leads to a higher demand for housing that caters specifically to their needs.
As we look towards the future, projections suggest that the number of older people in the EU will continue to rise significantly. This trend is expected to be mirrored in Amsterdam, which means there will be an even greater need for accessible and senior-friendly housing options. The city has already started to address this with initiatives like the Age-Friendly City (AFC) Amsterdam program, which focuses on creating supportive living environments for the elderly.
Moreover, the demand for healthcare and support services is also on the rise. With people living longer and requiring more specialized care, the senior housing industry is experiencing unprecedented growth. This further emphasizes the necessity for housing that can accommodate these needs, ensuring that older adults have access to the care and support they require.
In addition to these factors, community feedback has highlighted the importance of providing amenities that enhance the quality of life for seniors. This includes social activities, transportation services, and comfortable living spaces, all of which contribute to the growing demand for senior-friendly housing in Amsterdam.
Sources: CBS, Interreg Europe, NIC MAP Vision
14) Demand for student housing in Amsterdam will grow as more international students arrive
Amsterdam is becoming a hotspot for international students, and this trend is expected to continue. One of the main reasons is the expansion of English-taught programs at universities like VU Amsterdam and the Universiteit van Amsterdam (UvA). These universities offer over 170 programs in English, making them attractive to students from all over the world.
Even though the increase in international students in the Netherlands was the lowest in nine years during 2023-2024, the number remained stable at over 128,000. This stability suggests that the demand for student housing in Amsterdam is still high and could grow in the future. Additionally, the Dutch government is subtly encouraging more international students, especially from the European Union, to choose the Netherlands over other countries like the UK.
Moreover, Amsterdam is facing a significant shortage of student housing, with an expected shortfall of at least 50,000 units by 2024-2025. This shortage is driving up rental prices, with students paying an average of 961 euros per month for a room, making Amsterdam the most expensive city for student accommodations in the Netherlands. Universities and private housing providers are working together to address this issue, indicating ongoing efforts to meet the growing demand.
Sources: Study.eu, IAmExpat, The PIE News
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.