Is buying a property in Jordaan a good investment?

Last updated on December 29, 2023

Yes, the analysis of Amsterdam's property market is included in our pack

If you've explored the picturesque canals and vibrant atmosphere of Jordaan, you may have contemplated buying a house in this central part of Amsterdam.

Is it a good idea though? What's the current state of the real estate market in that area? Are property values appreciating or depreciating? Are investors seeing returns on their real estate investments? How's the demand for rentals?

We'll answer all these questions for you! When building and updating our property pack for Holland, our team has been researching and surveying this area. In fact, there is significant customer interest in investing there. Therefore, we believe it would be beneficial to include some information about it in our property pack.

Why do property buyers like investing in Jordaan?

Jordaan, nestled in Amsterdam, has a distinct charm that makes it a highly sought-after location for property buyers.

What sets Jordaan apart from other real estate markets is its unique blend of historical allure and contemporary vibrancy. This area, with its picturesque canals and narrow streets, is emblematic of the classic Amsterdam experience, yet it offers a more relaxed, community-focused vibe compared to the bustling city center.

Originally a working-class neighborhood, Jordaan has undergone a significant transformation since the late 20th century. It started gaining popularity in the 1970s and 1980s when artists and young professionals began moving in, attracted by the lower housing costs and the area's bohemian atmosphere.

This influx sparked a gentrification process, gradually elevating Jordaan's status. Now, it's a blend of historic charm and modern luxury, making it appealing for a wide range of buyers.

However, the question of whether Jordaan will retain its hype is interesting. The area has consistently maintained its appeal, largely due to its unique character.

Unlike newer, more modern developments, Jordaan's historical significance and enduring charm are qualities that don't fade with time. This enduring appeal is backed by the steady demand for properties in this area, despite the high real estate prices.

The kind of people Jordaan attracts is quite diverse. You'll find young professionals, artists, and expatriates drawn to its creative and international ambiance. It's also popular among families and older individuals who appreciate its quieter streets and community feel.

The presence of boutique shops, cozy cafes, and art galleries adds to its allure, attracting those who seek a blend of culture and comfort.

However, like any location, Jordaan has its weaknesses. The narrow streets and limited parking can be challenging for residents with cars. The popularity of the area also means that it can get crowded, especially during tourist seasons.

And, while the historic buildings add to its charm, they can also mean higher maintenance costs and potential limitations on renovations due to heritage preservation regulations.

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Why is Jordaan a nice place to live?

Jordaan is often praised as a delightful place to live and there are several reasons why, the lifestyle and culture in Jordaan are quintessentially Amsterdam but with a unique twist.

It's a neighborhood that balances the historical charm of its narrow streets and canal houses with a vibrant, artsy vibe.

Here, you'll find an array of quaint cafes, independent shops, and art galleries, all contributing to its laid-back, yet culturally rich atmosphere.

The expat community in Jordaan is quite thriving. Many expatriates are drawn to the area for its picturesque setting and the welcoming, inclusive environment. The presence of international cafes and stores also makes it easier for expats to feel at home.

Regular community events and markets add to this sense of belonging, making it an ideal spot for those relocating from abroad.

However, living in Jordaan does come with a higher cost. Due to its popularity and central location, the housing prices and living expenses are on the higher end compared to other neighborhoods in Amsterdam. This aspect is important to consider if you're planning a move here.

Safety is another key factor that makes Jordaan appealing. It's generally considered a safe area with a low crime rate, making it a favorable choice for families and individuals seeking a secure living environment.

In terms of amenities and facilities, Jordaan doesn't disappoint. For education, there are several schools like De Springstok and Theo Thijssenschool catering to younger residents.

Healthcare facilities like the Onze Lieve Vrouwe Gasthuis (OLVG) hospital are accessible, ensuring residents have medical services nearby. For shopping, the neighborhood is dotted with boutique shops, and larger shopping centers like Magna Plaza are just a short distance away.

The quality of infrastructure in Jordaan is commendable. The streets, although narrow, are well-maintained, adding to the neighborhood's charm.

Utilities and internet connectivity are typically of high quality, as expected in a well-developed city like Amsterdam. Accessibility is one of Jordaan's strong points.

It's centrally located, making it easy to reach other parts of Amsterdam either by foot, bike, or public transport. Speaking of public transportation, Jordaan is well-served by trams and buses, connecting it efficiently with the rest of the city.

For longer journeys, Amsterdam Centraal Station is nearby, providing access to national and international train routes. The Schiphol Airport, a major transport hub, is also conveniently reachable via public transport or a short car ride.

How much does it cost to buy real estate in Jordaan?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in Holland.

When it comes to buying a property in Jordaan, the experience can be quite varied, largely due to the diverse range of residential properties available.

In Jordaan, you'll mostly find apartments, canal houses, and some smaller townhouses. Given its historical and cultural significance, luxury apartments in renovated buildings are particularly popular. The demand for these types of properties is high because they offer a unique blend of Amsterdam's rich history and modern living.

Jordaan, known for its picturesque canals and narrow streets, is not an area with extensive new developments. The neighborhood is characterized mainly by resale properties, especially traditional Dutch houses and canal-side apartments.

These properties have been renovated over the years to meet modern living standards while preserving their historical charm.

As for the price range, properties in Jordaan can be quite expensive, reflecting its popularity and central location. You could expect the prices per square meter to be significantly higher than in many other parts of Amsterdam.

Prices in Jordaan have been on the higher end, for example, a small apartment might be priced at several thousand euros per square meter.

Over recent years, property values in Jordaan have seen a steady increase. This trend is partly due to the limited availability of space and the high demand for properties in this prime location.

Another factor contributing to rising values is the neighborhood's enduring appeal — its combination of historical significance, cultural vibrancy, and central location makes it a perennial favorite.

Looking ahead, the real estate market in Jordaan is likely to remain strong. While specific upcoming developments or city planning changes that might affect property values are not known to me, the general trend in such historic and well-established areas is for steady growth.

Factors like urban development policies, infrastructure improvements, and the general desirability of living in central Amsterdam will continue to influence the market.

Predictions for the real estate market in Jordaan in the coming years lean towards continued appreciation in property values. This is based on several factors.

Firstly, the limited availability of new properties in the area naturally drives up the value of existing ones.

Secondly, Jordaan's status as a culturally rich and aesthetically appealing neighborhood maintains its popularity among buyers.

Finally, as Amsterdam continues to grow as a global city, neighborhoods like Jordaan, with their unique charm and central location, are likely to see a sustained interest from both local and international buyers.

Where is the best area to buy a property in Jordaan?

Finding the best area to buy a property in Jordaan can be quite subjective, as it largely depends on what you're looking for in a neighborhood.

Jordaan, with its rich history and vibrant culture, offers various atmospheres, property types, and prices in its different parts.

Firstly, if you're drawn to the classic Amsterdam experience, the areas around the canals, like the Prinsengracht or Lijnbaansgracht, are highly desirable. These areas are known for their beautiful canal houses and apartments.

Offering stunning views and a quintessentially Dutch living experience. The atmosphere here is lively yet charming, with plenty of cafes, shops, and galleries.

However, these areas are also among the most expensive in Jordaan due to their popularity and the historical value of the properties.

For those looking for something slightly quieter but still within the Jordaan, the areas around the Noordermarkt and Westerstraat might be appealing. These areas have a more laid-back vibe and are known for their local markets and eclectic mix of stores.

The property types here vary, with a mix of smaller apartments and traditional houses. The prices can be somewhat more affordable compared to the canal-side properties, but they are still in the higher range due to the location's popularity.

In terms of up-and-coming areas within Jordaan, the neighborhoods around the Rozengracht are gaining attention. This area is becoming more popular due to its more accessible property prices and the ongoing development of local amenities. The properties here are diverse, ranging from modern apartments to older, character-filled houses.

If you're considering where to buy a property in Jordaan, areas like the Jordaan Noord (North Jordaan) can be a good choice. This part of Jordaan tends to be quieter and more residential, offering a more authentic Amsterdam living experience.

It's still close to all the amenities and the vibrant atmosphere of central Jordaan but without the hustle and bustle.

On the contrary, areas closer to the tourist-heavy spots, like those immediately bordering the Anne Frank House, might not be advisable for everyone.

While they offer the excitement and energy of being in a tourist hotspot, they can also be noisier and less private, which might not be ideal for those seeking a more tranquil living environment.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for Holland.

Area	Atmosphere	Property Types	Price Range
Canal Areas (e.g., Prinsengracht)	Lively, Classic Amsterdam	Canal Houses, Apartments	High
Noordermarkt & Westerstraat	Laid-back, Local Markets	Mix of Apartments and Houses	Moderately High
Rozengracht	Up-and-Coming, Developing	Diverse, Modern Apartments to Older Houses	Moderate
Jordaan Noord (North Jordaan)	Quieter, More Residential	Variety of Residential Properties	Varies, Generally More Affordable
Near Tourist Hotspots (e.g., Anne Frank House)	Noisy, Tourist-Heavy	Varied, Often Smaller Apartments	High, Due to Location

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Is there a strong rental demand in Jordaan?

Jordaan is indeed an area with a strong rental demand, this demand stems from the neighborhood's unique blend of historical charm, cultural richness, and prime location, which makes it an attractive place for a variety of potential tenants.

When it comes to the type of rental demand in Jordaan, it encompasses both short-term and long-term rentals, but each has its distinct characteristics. Short-term rentals are particularly popular among tourists and visitors who seek an authentic

Amsterdam experience. The picturesque streets, the proximity to major attractions, and the lively atmosphere of Jordaan make it a preferred choice for those on vacation or short business trips.

Long-term rentals, on the other hand, attract a different demographic. This includes young professionals, expatriates, and students who are drawn to the area's vibrant lifestyle and the sense of community it offers.

The target demographic for long-term rentals often looks for properties that blend historical charm with modern amenities.

The profiles of potential tenants in Jordaan are quite diverse. For short-term rentals, you're looking at tourists and short-term visitors, often couples or small families, who value the central location and the easy access to Amsterdam's attractions.

For long-term rentals, the tenants are typically young professionals, both local and international, expats working in Amsterdam, and students attending nearby universities.

These individuals or groups usually seek apartments or small houses that are well-maintained, furnished (in the case of expats and students), and equipped with modern facilities.

The type of properties that are most sought-after in Jordaan vary. For short-term rentals, properties with a local, authentic feel — like traditional Amsterdam apartments with canal views — are highly coveted.

For long-term rentals, tenants often look for comfortable, practical living spaces. Apartments that are spacious, have good natural light, and modern amenities are in high demand.

Specific areas within Jordaan like those close to the Noordermarkt, Westerstraat, or the Rozengracht are popular due to their vibrant market scenes and local lifestyle. Properties in these areas are often preferred for their balance of Amsterdam charm and living convenience.

Amenities that can help reduce vacancy in rental properties include high-speed internet, modern appliances, and in some cases, furnished interiors. These amenities cater to the needs of the modern tenant, whether they are professionals working from home, students, or tourists looking for comfort during their stay.

The potential returns on investment for properties in Jordaan can be quite promising. While exact numbers are not available without current market data, properties in Jordaan have historically provided solid rental yields, especially given the high demand for both short-term and long-term rentals.

This is further bolstered by the area's enduring appeal and the limited availability of properties, which can drive up rental prices.

In terms of properties that are getting more demand and could potentially yield better returns, well-maintained traditional Amsterdam apartments, especially those with unique features like canal views or rooftop terraces, are increasingly popular.

These properties offer the charm and character that many tenants seek in Jordaan, making them a potentially lucrative investment.

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Is it easy to buy a property as foreigner in Jordaan?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in Holland.

Buying a property as a foreigner in Jordaan, Amsterdam, is relatively straightforward, but there are several aspects that you need to be aware of to navigate the process smoothly.

Firstly, there are no specific regulations or restrictions imposed on foreign buyers in the Netherlands. This openness makes it easier for non-Dutch citizens to invest in properties, including in popular areas like Jordaan.

However, while the absence of legal restrictions is a plus, the process itself can have complexities.

The purchasing process in Jordaan typically starts with identifying a property that meets your criteria. Once you've found a property, the process involves making an offer, negotiating terms, and, once the offer is accepted, signing a preliminary purchase agreement.

After this, there's a due diligence period, where various checks are made, including the property's legal status, structural condition, and any outstanding debts or encumbrances.

One primary risk associated with property investment in Jordaan is the high market competition, which can lead to inflated prices. The area's popularity means that properties can be pricey, and there's always a risk of paying over the odds in a competitive market.

Additionally, being an old neighborhood, some properties in Jordaan may require significant maintenance or renovation, which can add to the total investment cost.

A classic pitfall for foreign buyers in the Netherlands is the language barrier and unfamiliarity with local real estate laws and practices.

For example, in the Netherlands, it's common for properties to be sold through a bidding process, which can be unfamiliar and daunting for those used to a different system.

There's also the risk of overlooking important legal checks or misinterpreting the property's legal status and zoning regulations.

Working with a local real estate agent and possibly a lawyer is highly advisable. A local agent will have a deep understanding of the Jordaan market, can guide you through the bidding process, and help identify properties that match your requirements.

A lawyer, on the other hand, can ensure that all legal aspects of the purchase are correctly handled, and your interests are protected.

Common exit strategies for property investors in Jordaan include renting out the property for a steady income stream or selling the property at a profit. Jordaan's enduring popularity suggests that property values are likely to appreciate over time, making it a potentially profitable long-term investment.

Renting out is a popular strategy given the area's strong rental demand, but it's important to be aware of local rental regulations.