Authored by the expert who managed and guided the team behind the Netherlands Property Pack
Yes, the analysis of Amsterdam's property market is included in our pack
What is happening in Amsterdam’s real estate market? Are prices soaring or stabilizing? Is the city still a magnet for international buyers? How are local government policies shaping the housing landscape in 2025?
These are the questions we hear every day from industry experts, potential homeowners, and investors, from the Jordaan to the Zuidas and beyond. Maybe you’re curious about these trends too.
We know this because we maintain close ties with local experts and individuals like you, exploring the Amsterdam real estate scene daily. That’s why we crafted this article: to deliver clear insights, thoughtful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to reach out with your thoughts or comments, and we’ll strive to enhance this content for you.
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1) Foreign buyers will target central neighborhoods for their closeness to cultural and business hubs
Foreign buyers are likely to focus on central neighborhoods in Amsterdam because these areas have seen a significant rise in property prices. In the first quarter of 2024, property prices in Amsterdam increased by 5.24%, with central areas experiencing even higher growth rates compared to the outskirts. This trend suggests that central neighborhoods are becoming more desirable, likely due to their proximity to cultural and business centers.
Another reason is the increased demand for short-term rentals in central neighborhoods, despite stricter rental rules. Even with an 82% drop in Airbnb listings due to mandatory registration, there is still a strong interest in these areas for long-term rentals. This indicates that people, including foreign buyers, are drawn to the central parts of the city, possibly because of their cultural and business attractions.
Additionally, central Amsterdam offers higher rental yields, with the average monthly rent for a one-bedroom apartment being significantly higher than in the suburbs. This makes central neighborhoods more appealing to foreign investors looking for profitable rental opportunities. The concentration of international businesses and offices in central Amsterdam also attracts foreign buyers who want to be close to economic centers.
Sources: Global Property Guide, Adleorelo, Rabobank
2) Property prices in less central Amsterdam areas will dip slightly as demand moves to more central locations
In recent years, Amsterdam has experienced a noticeable shift in property demand, with a growing preference for central locations. This trend has been driven by several factors that have made central areas more attractive to buyers.
Firstly, property market reports from 2023 and 2024 highlighted a decrease in prices in less central areas, while central neighborhoods saw a rise in house prices. This indicates that buyers are increasingly favoring central locations, likely due to their proximity to amenities, public transportation, and job opportunities.
Additionally, surveys have shown a clear preference among homebuyers for central living, supported by data on population density changes that reveal a shift towards urban centers. This movement is further encouraged by new developments and investments focused in central Amsterdam, enhancing the area's appeal.
Transportation and infrastructure improvements have also played a significant role in this shift. Enhanced accessibility through better public transportation systems and bike-friendly roads has made central areas more desirable, contributing to higher property prices there.
Real estate agents have observed a shift in buyer interest towards central locations, with buyers often making offers below asking prices in less central areas. This suggests a decrease in demand for properties outside the city center.
Moreover, analysis of rental yields indicates higher returns in central locations, making them more attractive for investors. This, combined with media coverage highlighting the desirability of central living, has further driven demand towards these areas.
Government plans prioritizing development in central areas, along with changes in zoning laws favoring urban development, have also contributed to this trend. These factors, coupled with demographic shifts showing younger populations moving to central areas, support the idea that central locations will continue to attract more buyers.
Sources: Global Property Guide, IAmExpat, IAmExpat, NL Times
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) Amsterdam rents will increase as the city draws more international talent and businesses
In recent years, Amsterdam has seen a noticeable rise in rental prices, and this trend is expected to continue. As of August 2024, the average rental prices for a one-bedroom apartment in central Amsterdam reached €2,041 per month, while a three-bedroom apartment in the city center was priced at €3,401 per month. These figures represent a significant increase from previous years, highlighting a clear upward trend in rental costs.
The demand for housing in Amsterdam is incredibly high, with a vacancy rate of less than 2%. This low vacancy rate indicates that the demand for housing is outstripping supply, which naturally leads to higher rents. The influx of international students, with the University of Amsterdam hosting nearly 13,800 international students in 2024, further contributes to the growing population and increased demand for housing.
Moreover, Amsterdam's appeal as a business hub continues to attract international companies, bringing in skilled workers who need housing. This influx of expatriates and international students, along with the expansion of the tech and startup scene, adds to the demand for rental properties. The limited availability of rental properties, coupled with strict regulations, makes it challenging for newcomers to find housing, further driving up rents.
Sources: Statista, Adleorelo, NL Times
4) Foreign investors will increase as Amsterdam becomes more appealing for international business
In recent years, Amsterdam has become a magnet for foreign investors, and several factors have contributed to this trend. One of the key reasons is the significant increase in Foreign Direct Investment (FDI) inflows. In September 2024, the Netherlands saw a remarkable rise in FDI by 14.6 USD billion, a stark contrast to the previous quarter's decline. This surge indicates a growing confidence among international investors in Amsterdam's economic potential.
Another compelling factor is Amsterdam's impressive ranking as a global business hub. In 2024, it secured the #2 spot in fDi's European Cities and Regions of the Future, highlighting its economic potential, business friendliness, and connectivity. This ranking reflects the city's ability to attract and retain international businesses, making it an appealing destination for investors looking for a stable and thriving environment.
Moreover, Amsterdam's infrastructure improvements and connectivity have played a crucial role in attracting foreign investors. The Port of Amsterdam has emerged as a standout logistics hub, with significant projects like the construction of a green hydrogen plant. These developments enhance the city's appeal as a strategic location for international business operations.
Sources: CEIC Data, I Amsterdam
5) Short-term rental prices will rise with increased tourism and business travel
In recent years, we've seen a significant rise in tourism and business travel to Amsterdam, which has had a direct impact on short-term rental prices. In 2023, tourists spent nearly 13 billion euros more than they did in 2022, bringing the total expenditure to almost 105 billion euros. This increase in spending indicates that more people are visiting and spending money in the city, which naturally boosts demand for accommodations.
The vacancy rate for short-term rentals in Amsterdam has remained extremely low, at less than 2%. This low vacancy rate suggests that there is a high demand for these types of accommodations, which often leads to higher rental prices. Additionally, the Affordable Rent Act introduced new regulations, but the demand for short-term rentals continues to rise, further pushing prices up.
Business travel has also seen a strong rebound, with spending in the Netherlands expected to surpass pre-pandemic levels. This resurgence in business travel means more professionals are looking for short-term accommodations, adding to the demand. The Netherlands, along with other European countries, has shown a strong recovery in business travel spending, which is a key factor in the increased demand for short-term rentals.
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6) Updated property tax laws will impact the profitability of investment properties in Amsterdam
In 2025, property tax in Amsterdam will jump by 27%, raising annual payments from 313 euros to 399 euros per home.
This increase is not just a blip; property taxes have been climbing steadily in Amsterdam, with an average annual rise of 3.1% since 2014. Back in 2020, there was a sharp spike of 17.4%, which even surpassed the Tax Cap, hinting at a growing financial burden for property owners.
For the city, property taxes are crucial, making up 32% of Amsterdam's General Fund revenue in 2021. This means as taxes go up, property owners might need to rethink their financial strategies, which could impact property values and rental yields.
Investors should be aware that these tax changes can directly affect the profitability of their properties. With higher taxes, the cost of owning property increases, potentially squeezing rental income margins.
In the competitive Amsterdam market, understanding these tax dynamics is key. Investors might need to adjust their expectations and strategies to maintain profitability.
Keeping an eye on these trends can help property owners make informed decisions, ensuring they stay ahead in a changing market.
Sources: Amsterdam Property Tax Increase, City of Amsterdam Financial Data
7) Amsterdam will see rising demand for accessible, senior-friendly housing due to its aging population
In recent years, Amsterdam has seen a noticeable increase in its elderly population. By 2024, the Netherlands had over 3.6 million people aged 65 and older, making up 20.5% of the population. This trend is expected to continue, with projections suggesting that by 2040, a quarter of Amsterdam's residents will be 65 or older.
As people live longer, thanks to rising life expectancy rates, the demand for housing that caters to seniors is growing. The UNECE report highlights that a significant portion of the Dutch population is currently between 50 and 60 years old, indicating that the aging trend will persist over the next decade.
Moreover, there is a notable shortage of senior-friendly housing in Amsterdam. The Dutch Living Outlook 2025-2027 report points out a growing housing shortage, particularly in the Randstad region, which includes Amsterdam. This shortage is expected to drive up prices and make it harder for seniors to find suitable housing.
Research shows that seniors are more willing to move if their new homes meet specific needs, such as easy accessibility and proximity to essential amenities like supermarkets and healthcare facilities. This highlights the importance of developing housing that caters to these requirements.
Sources: UNECE Report, Amsterdam's Housing Initiative, Dutch Living Outlook 2025-2027, CBS Population Data
8) Interest in smaller, affordable apartments will grow as people prioritize location over space
Urban living in Amsterdam is becoming increasingly popular, with thousands expressing interest each year.
As property prices soar, smaller apartments are gaining traction among those eager to live in the city. Last year, micro-apartments in Amsterdam averaged just over €400,000, a stark contrast to other regions. This makes compact living spaces more attractive for city enthusiasts.
Young professionals in Amsterdam often find themselves in a bind. They earn too much for social housing but face challenges securing mortgages. As a result, many choose smaller, centrally-located apartments, valuing location over space.
The trend isn't just among the young. Single-person households are on the rise, especially among older individuals. By 2035, it's expected that 42% of Dutch households will be single-person, driven by an aging population and longer life spans.
With more people prioritizing location, smaller, more affordable apartments are becoming the go-to choice. This shift reflects a broader change in housing preferences, where convenience and proximity take precedence.
As the city continues to attract diverse demographics, the demand for compact living solutions is set to grow. This evolution in housing needs is reshaping the urban landscape, making it more dynamic and accessible.
Sources: Dutch News, NL Times, Greystar Netherlands Overview
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) Amsterdam’s property prices will stabilize as the market adapts to recent rapid increases
In recent years, Amsterdam's property market has experienced rapid price increases, but several factors suggest that these prices will stabilize. One key reason is the decreasing year-over-year growth rates in property prices. For example, in 2023, house prices fell slightly by 0.6% nationwide, indicating a slowdown in growth. By 2024, although prices were still rising, the pace of increase was moderating, with a 5.24% rise in Q1, which was slower than in previous years.
Another important factor is the increased housing supply due to new construction projects. The government plans to build 20,000 new homes in existing neighborhoods by 2035, with 7,500 new homes per year. This increase in housing supply is expected to help stabilize prices. Additionally, government policies aimed at cooling the housing market, such as affordability requirements and restrictions on buy-to-let investments, are designed to make housing more accessible and reduce speculation.
Rising interest rates have also played a role in affecting mortgage affordability. After rising in 2022 and 2023, interest rates stabilized in early 2024, leading to renewed buyer confidence. However, higher interest rates mean that buyers can borrow less, which has a depressing effect on prices. Reports of longer time on the market for properties suggest that buyers are becoming more cautious about their spending, further contributing to price stabilization.
Sources: Global Property Guide, IAmExpat, BRXS, Makelaar Amsterdam, Tildes
10) Affordable housing projects will help curb overall price increases in Amsterdam’s real estate market
Affordable housing projects are crucial in moderating the overall price increase in the Amsterdam real estate market. In 2023, Amsterdam received nearly €9 million from the national government to fast-track the development of 880 homes, indicating a strong commitment to increasing affordable housing options. This funding is part of the Startimpuls program, which aims to expand affordable housing near key locations.
Moreover, the introduction of rent control measures, such as the Affordable Rent Act, has already shown positive impacts on the rental market. These measures have helped stabilize rental prices by capping rents based on quality indicators, which in turn reduces excessive costs for tenants. This approach has been successful in other cities, like San Francisco, where similar measures have led to stabilized real estate markets.
Additionally, the Dutch government's broader strategy to add over 900,000 new homes by 2030, including both new builds and renovations, aims to balance supply and demand. This initiative is expected to boost housing supply, which is a key factor in stabilizing property prices. By increasing the availability of affordable housing, the pressure on the market is reduced, leading to more stable prices.
Sources: Volt Nederland, Global Property Guide
11) Property interest in Oud-West will decline as other neighborhoods offer more competitively priced new developments
In recent years, the Oud-West area has been a popular choice for property buyers, but things are changing. New developments in other neighborhoods are offering more competitive pricing, which is drawing interest away from Oud-West.
For example, areas like Zuidas are seeing a lot of new construction. Between 2023 and 2025, about 1,700 new homes are being built in Zuidas, with plans for around 7,000 homes by 2030. This means more options for buyers, including affordable housing, which is very appealing.
Consumer surveys have shown that people are interested in these newer developments. The Bouwinvest Real Estate Outlook 2023-2025 highlights that expats are returning to Amsterdam, and more single-person households are forming. This makes it tough for single professionals and young families to buy homes, so they are looking for more affordable options.
Neighborhoods like Zuidas and Ravel are also being designed with better infrastructure and amenities. Ravel, for instance, will be a green, car-free area focused on family living, with lots of water and green spaces. This makes it an attractive choice for families looking for a better quality of life.
Sources: Zuidas Blog, Rabobank Housing Market Quarterly Report, Bouwinvest Real Estate Outlook 2023-2025
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12) Investors will increasingly target the Nieuw-West district for its affordability and growth potential
The Nieuw-West district in Amsterdam is catching the eye of investors, and it's easy to see why. In the past, specifically in 2023 and 2024, the housing market in Nieuw-West showed remarkable stability in house prices per square meter, with only a slight dip from €5,544 in Q3 2021 to €5,497 in Q2 2023. This stability, coupled with lower average transaction prices compared to central Amsterdam, makes Nieuw-West an attractive option for those looking for more affordable properties.
Moreover, as property prices in central Amsterdam have been on the rise, many buyers are now seeking more budget-friendly alternatives in districts like Nieuw-West. For example, the average transaction price in central Amsterdam reached a peak of €544,159 in Q2 2022, which is significantly higher than the prices in Nieuw-West. This price difference is a key factor driving interest in the district.
In addition to affordability, Nieuw-West is benefiting from recent infrastructure developments that have improved connectivity, making it even more appealing to investors. Although specific details on these projects are not provided, the general trend of enhanced connectivity is known to attract more investors and residents. Furthermore, the Dutch government's investment in local amenities and public services, as part of the Affordable Living plan, aims to create more affordable housing units, further boosting the district's potential for growth.
Sources: Makelaar Amsterdam, Bouwinvest Real Estate Outlook, Pararius
13) Stricter energy efficiency rules will affect property values and increase renovation costs
In recent years, stricter energy efficiency regulations have been introduced, significantly impacting property values and renovation costs. These regulations have led to a rise in the costs of energy-efficient renovation materials and technologies. For instance, energy-saving projects in the Netherlands typically range from €5,000 to €50,000, covering materials, installation labor, and removals, but excluding structural works or finishing materials like tiles.
Moreover, there's an increased demand for energy-efficient properties, which has driven up property values. Homeowners are increasingly interested in energy-efficient homes due to rising energy bills. These homes are not only appealing because of potential savings on energy costs but also because buyers can benefit from discounts on mortgage interest rates and the ability to borrow up to 106% of the home's value if it has a higher energy label.
Government incentives and penalties related to energy efficiency compliance also play a crucial role. The Dutch government has established a €120 million subsidy fund to help landlords improve their properties' energy efficiency. Additionally, the Nationaal Warmtefonds offers 0% interest loans for energy-saving projects to households with an annual income below €60,000, making it easier for homeowners to finance these upgrades.
Sources: Dutch News, IAmExpat
14) New tax incentives will boost eco-friendly property developments through sustainable building practices
New tax incentives for sustainable building practices are set to encourage eco-friendly property developments significantly. In 2025, the Dutch government increased funding for energy-efficient investments to €431 million, a substantial rise from 2024. This financial boost demonstrates a strong commitment to supporting the transition from fossil fuels to sustainable energy sources.
The growing trend of green building certifications in Amsterdam further supports this shift. By 2016, 11% of office space was certified by BREEAM or LEED, up from virtually zero in 2011. This upward trend indicates a clear interest in sustainable construction, which is likely to be bolstered by new tax incentives.
Moreover, the introduction of tax incentives like the Energy Investment Deduction (EIA) program is expected to lead to increased investment in green technologies. With €431 million allocated for energy-efficient investments in 2025, these incentives are designed to encourage businesses to adopt more sustainable practices.
Sources: IOPlus, Maastricht University
We made this infographic to show you how property prices in the Netherlands compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Long-term rental prices will stabilize with more rental properties entering the market
In recent years, we've seen a significant increase in the construction of new rental properties in Amsterdam. For instance, by 2025, about 1,700 new homes are expected to be built in Zuidas, with a total of around 7,000 homes planned by 2030. This includes both new builds and renovations, which means more options for renters.
The Dutch government has also been proactive in encouraging property development. Their goal is to add over 900,000 new homes by 2030, as part of the Housing Agenda 2025. This initiative aims for a substantial portion of new constructions to be social and mid-market rental housing, which should help balance the market.
Additionally, there are reports of landlords starting to offer concessions to attract tenants. This is a sign that the market is becoming more competitive, as landlords adjust to the increasing supply of rental properties. With more options available, tenants might find it easier to negotiate better terms.
16) Green initiatives like new parks and green spaces will raise property values in nearby neighborhoods
Green initiatives, like developing more parks and green spaces, can significantly boost property values in nearby neighborhoods. In the past, studies have shown that green interventions in cities can increase local property values by up to 20% compared to areas without such interventions. This was observed in a meta-analysis conducted by researchers from Utrecht University and Vrije Universiteit Amsterdam.
Moreover, being closer to parks and green spaces has been linked to higher real estate prices. For instance, moving 100 meters closer to an urban forest or park in a European city can increase house prices by 1.82% and 2.06%, respectively. This trend reflects a growing preference among buyers for homes near parks, driven by the desire for healthier living environments and recreational opportunities.
In Amsterdam, urban renewal projects that include green spaces have shown increased neighborhood desirability. The IJplein-Vogelbuurt district, for example, has seen significant investments in green infrastructure, enhancing its appeal despite challenges related to environmental justice and gentrification. Additionally, the city's Green Agenda, which includes plans for Nature-Based Solutions, has demonstrated economic benefits, such as improved biodiversity and reduced flood risk.
Sources: Oppla, University of Twente, Wageningen University & Research
17) Young professionals will boost demand for modern urban living spaces in Amsterdam
In recent years, Amsterdam has seen a significant rise in the number of young professionals, particularly those aged 15-26, entering the workforce. This trend was evident in 2023 when the labor force participation among this age group increased by 34,000 compared to the previous year.
Moreover, Amsterdam's job market is thriving, especially in the tech and creative industries. With over 10,000 creative job opportunities available, roles such as Brand Creative Strategist and Campaign Manager are attracting young talent to the city. This influx of job opportunities is a major draw for young professionals seeking vibrant career paths.
Additionally, the demand for urban living spaces in Amsterdam's city center has been on the rise. Rental prices and property values have increased, reflecting the high demand for modern living spaces. This trend is further supported by the development of new residential projects specifically targeting young professionals, ensuring a steady supply of suitable housing options.
Sources: CBS, The Muse, World's Best Cities
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.